CapitaLand posts 2 billion yuan of China residential sales during ‘high season’

Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.

CapitaLand said on Wednesday that its four residential launches on the mainland over China’s traditional high season for new home sales, called the “Golden September Silver October,” sold a total 1,506 units with a value of around 2 billion yuan, or S$396.7 million.

Among the four launches, the Parc Botanica in Chengdu sold out all 388 units for 332 million yuan, The Lakeside in Wuhan sold about 90 percent of its 372 units for 322 million yuan, La Botanica in Xi’an sold 97 percent of 535 units for 585 million yuan and The Metropolis in Kunshan sold more than 90 percent of 324 units for 758 million yuan, the property developer said in a filing to SGX before the market open on Wednesday.

That announcement comes just a day after a South China Morning Post report lamenting China’s slowing home sales growth in October, when sales fell on-month despite rising on-year, and projecting a property bear market would persist.

But Lucas Loh, CapitaLand’s president for China and investment management, remained positive.

“As China’s urbanisation continues unabated, the underlying demand for new homes in first- and second-tier cities that are part of CapitaLand’s core city clusters strategy remains healthy,” Loh said in the statement.

“Amidst market headwinds, our land banking strategy, extensive network of partnerships and robust financial position will put CapitaLand in good stead to continue benefiting from China’s growth,” he added.

For the first half of the year, CapitaLand sold 97 percent of its launched residential units and handed over nearly 3,000 units, up 20 percent on-year, it said. For the second half, it expected to hand over more half of the 8,000 units sold in China, which were valued at a total 16.2 billion yuan, or S$3.2 billion, it said.

In China, CapitaLand said it has a pipeline of another 2,000 launch-ready residential units that will be released based on market conditions. That includes its first residential development in Guangzhou’s Datansha urban renewal project and the Century Park development in Chengdu, it said.

It also acquired three sites in Chongqing and Guangzhou between June and August of this year, adding another 3,400 units to its China development pipeline, CapitaLand said.