Vanke snapping up land parcels

09:05, June 04, 2010      

Email | Print | Subscribe | Comments | Forum 

China Vanke Co Ltd, the country's largest property developer, is still actively seeking land parcels despite recent market tightening policies, the company's top management said on Thursday.

"We are continuing to look at opportunities to increase our land bank, especially in second- and third-tier cities," said Xiao Jin, marketing chief of Vanke Beijing.

Last month, Vanke purchased five parcels in Beijing, Hangzhou, Guiyang and Xi'an, among which two parcels were sold at the basis price and the other three were sold at a price premium of less than 10 percent.

Ge Haifeng, general manger of the data center at China Index Academy, said now is a good opportunity to grab land parcels as the government has boosted land supplies while land prices are falling.

"Though some property developers may be more cautious on purchasing land because of market uncertainties and increasing difficulties in financing, cash-rich listed real estate firms should take it as a good opportunity to increase their land bank at a lower cost," Ge added.

According to China Real Estate Top 10 Research, the net debt ratio of mainland-listed property developers stood at 41.1 percent in the first quarter, up 8 percentage points from the end of 2009, indicating increased debt risks.

In terms of property prices, Xiao said there is downward pressure in Beijing's real estate market and property developers will change their marketing strategy accordingly. But he declined to reveal Vanke's sales strategy.

China Business said on Tuesday that Vanke plans to lower its sales prices at the end of June due to low transactions, citing unnamed sources.

According to Beijing Real Estate Transaction website, new apartment sales fell 48.6 percent in May, and those of pre-owned houses plummeted 57 percent.

Despite falling sales, the price of new residential apartments in Beijing remains firm, apart from discounts offered in Tongzhou and Wangjing where prices soared the most in the first quarter of this year.

"Along with shrinking sales, the price drop will accelerate in the second half of the year," said Ge. "Though we see little possibility of the government launching more tightening policies in the short term, we believe the price correction will be finished quicker than in 2007."

Source: China Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion