Xintiandi New World Ji government to speed up the approval of agricultural land
The government intends to increase the supply of land to curb property price increases. Both SHKP (00016) and NWD (00017) are cautiously optimistic about the property market this year. SHKF is also expected to see a 5% increase. The two companies Qi and the government are negotiating the conversion of farmland, Hebei government to speed up the approval process, and the introduction of more land auction.
As at the end of last year, Xindi held about 29 million square feet of agricultural land while New World also owned about 17 million square feet of agricultural land.
Guo Binglian: enough storage for 5 to 6 years
Xindi added three more projects to Hong Kong in the second half of last year, of which nearly 4.8 million square feet were converted from farmland. Deputy Managing Director, Thunder pointed out that in recent years, it has been consulting and applying with the government continuously. Some of the agricultural land is in the final stages of land use change. However, due to the complexity and long process of negotiation and approval, it is difficult to predict how much land conversion can be completed this year .
Chairman and Managing Director Kwok Ping-luan hoped that the government could launch more land so that more developers could cast their land and the land price rally could be stabilized. He emphasized that the group’s existing land bank is sufficient to meet the development needs in the next five to six years. However, in the future, it will still actively increase its land bank through different channels.
The Thunder said Hong Kong’s economy is stable with low mortgage interest rates and market sentiment is still high. Property prices are expected to rise modestly by 5% this year. As of this fiscal year, the contract sales volume of Shinchi has reached 35 billion yuan.
In the New World, Zheng Zhigang, executive vice chairman and general manager, said that at present, New World is planning and applying for 1.5 million square feet of agricultural land for land conversion respectively. However, due to the longer approval period for changing the use of the land, Building reconstruction, open auction, etc. to absorb new land bank.
Zheng Zhigang: rational to refuse to follow suit
He said that the New World has always been rational, not chasing or not following suit. At least, it can predict that the selling prices in the next two years will be taken into consideration. Taking the earlier voted tactics as an example, And Cheung Sha Wan. In particular, Cheung Sha Wan also voted for a total of 3 land plots of $ 15 billion. All optimistic about the development of Kowloon West will make Cheung Sha Wan into a new business district and add value to the area.
As of mid-February this year, New World contract sales reached 7.1 billion yuan, accounting for 71% of the annual target. Cheng Chih-kang said the strong demand for the property market is strong, confident sales throughout the year sales standards, and prudent optimistic about the property prices this year.
Some foreign analysts pointed out that last year, Hong Kong property developers all bumper harvests, all sold well, and the price is satisfactory, so the property development in New World and the New World are nearly 40% profit margin, based on there are still more Unrecorded items, I believe the next six to 12 months profit margins can be kept high.