[photopress:realestate.jpg,full,alignright]Analysts say that property developers with large land reserves and a national presence are expected to be less-affected by tightening policies by posting strong earning growth in the second half of this year.
Among more than 30 listed mainland property companies, China Overseas Land, Beijing Capital Land, Guangzhou R&F and China Vanke topped a rating list based on a survey of 10 analysts conducted by China Daily in Hong Kong and Shenzhen.
The majority of public property developers posted strong net profit growth in the first half of 2006. This is probably because, in the first six months, the impact of a host of cooling-down measures had yet to be felt.
In April came a series of measures to rein in runaway property investment and stabilize property prices. Patrick Chow, an analyst at Taifook Securities in Hong Kong, said, ‘The impact was not reflected in companies’ first-half balance sheets. But it will certainly become more visible in the second half.’
Hong Kong-listed China Overseas Land got the most ‘buy’ ratings from the analysts surveyed by China Daily. The developer, formerly the investment arm of the Ministry of Construction, has land reserves across the nation, with many located in small- and medium-sized cities.
According to a report by Hong Kong-based Sun Hung Kai Financial Group, China Overseas’ land sales could reach 1.6 million square meters this year, 2.7 million square meters in 2007 and 3.5 million square meters in 2008,
Source: China Daily.