Favourable government policies were huge factors.
The city-state’s property developers had a good year in China last year, as they rode on government policies to post solid numbers.
According to Maybank Kim Eng, property giant CapitaLand almost doubled its sales in the country with over 9,400 homes sold worth CNY15.4b in 2015.
CityDev, meanwhile, sold 677 units at Hong Leong City Centre, Suzhou and 13 villas at Hongqiao Royal Lake, Shanghai.
“These strong presales should translate into solid earnings in 2016. CapitaLand expects to complete c.7,000 homes in 2016, of which 65% has been sold,” Maybank Kim Eng said.
Meanwhile, the latest valuation for developers’ office and retail properties have also remained resilient, as cap rates used by valuers remaining low.
“Low interest rates have been instrumental in narrowing cap rates for property assets after GFC. With benchmark interest rates inching higher and the office/retail market remaining weak, we see scope for cap rates to normalise,” Maybank Kim Eng added.
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