Record year of China home sales just around the corner for CapitaLand

It’s also looking for new funding sources.

Considering that China accounts for almost half (46%) of the company’s total assets, the company will continue to stay within this area of competency.

And efforts to focus on projects in Tier 1 and upper Tier 2 cities have been bearing fruit, according to analysts from Maybank Kim Eng.

Maybank Kim Eng says home sales in the country have also benefited from a series of policy easing. Management is also expecting a record year of sales with around 8,000 units worth CNY14b in value.

Meanwhile, the company is also exploring options to tap new sources of funding which could lower financing costs in the country.

“It prefers to replenish its land bank via M&A or JVs instead of land auctions as land prices have appreciated at a faster pace than home prices. It would alsolook to acquire land as a group which would harness its strength as a developer of integrated projects and provide opportunities across sub asset classes,” Maybank Kim Eng said.

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