China-focused developer Shimao Property expects the country’s ailing property sector to pick up in the first quarter next year as homebuyers return to the market, and said it is confident of meeting its annual sales target thanks to moves by Beijing to stimulate demand.
Hui Wingmau, the chairman, said, ‘The measures will help lead to a healthy and stable development of the property sector, and aid home buyers to regain confidence. Homebuyers who are now staying on the sidelines will eventually return to the market. We will be able to see a recovery in the coming spring.’
The group’s property sales totalled RMB10 billion ($1.47-billion) for the first 10 months of the year, against a full-year target of RMB14 billion. Hui Wingmau said, ‘We are doing a lot of work to catch up with our target. We are confident that we can meet the target.’
Last month, Shimao said property sales totalled RMB8.3-billion for the first nine months of 2008, up 21.3% from the same period a year ago, thanks to contributions from its projects in Chinese cities such as Shanghai and Hangzhou. Its biggest rival, China Vanke, China’s largest listed property developer, has reported a drop in property sales.
Source: Financial Post Canada