[photopress:real_estate_shenzhen_lowu.jpg,full,alignright]Poly Real Estate is China’s second-largest developer by market value and is doing remarkably well.
It reports that sales in the first nine months of the year more than doubled.
The Guangzhou-based company reported sales of RMB12 billion ($1.6 billion) from January to September. This is a gain of 108% over a year earlier. Sales rose 75%t in terms of properties with an area of up to to 1.49 million square meters so it was not all high end luxury apartments, but not what you would called the bottom end of the market either.
China’s real estate prices have surged despite the efforts of the government to cool them down. Now, with rising inflation making low-yielding bank deposits less attractive, households have shifted savings into stocks and real estate. Anything the government does merely helps to slow down — slightly — the surge.
Property prices climbed 21% in Shenzhen and 12% in Beijing in August compared to a year earlier. Home prices in 70 major cities gained 8.2% from a year earlier.
Poly sold 220,800 square meters of property for RMB1.61 billion last month and on August 20 said that first-half net income had jumped 25% to RMB277.8 million.