Second-tier city foray to help double Shimao Property sales
Updated: 2007-07-31 06:57
By Hui Ching-hoo(HK Edition)
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Shimao Property aims to double its property sales this year, thanks to its expansion into second-tier cities.
In an interview with China Daily, Shimao Property executive director Jason Hui expected that the properties sales would grow at least double this year, compared to 675,000 square meters GFA (gross floor area) in property sales in 2006.
"The company basked in a stellar performance last year. We are confident that the pace will go on because many sizeable projects in the second-tier cities are on the pipeline this year," said Hui.
Based in Shanghai, Shimao Property acquired its land reserves in second-tier cities such as Shenyang and Suzhou in recent years.
Explaining that the foray has begun to reap the fruit, Hui said the revenue would not shoot up in proportion to the increase of sales volume.
"The average selling price for flats in the secondary cities will mark down 20 percent to 30 percent compared with Shanghai's, but we still believe the increase in sales will significantly beef up our revenues," he said.Hui also revealed the company would increase its exposure in commercial market and expressed hope that residential properties and investing properties would weight in 7-to-3 proportions in the long run.
The company, that has two hotel projects with 327 and 770 rooms, respectively, plans to spin off hotel business in 2009. The projects are due to complete by the end of the year.
(HK Edition 07/31/2007 page6)