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Future of property market lies in China’s small cities - Country Garden chairman

Infra News - Published on Wed, 20 Mar 2019

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SCMP reported that wherever its rural migrant workers will go, Country Garden Holdings, China’s biggest property developer by sales, will follow.

Mr Yeung Kwok Keung, 64, the company’s chairman, said during its result briefing on Monday “I think highly of small cities and counties. The future of Chinese [property] lies where thousands of migrant workers will settle down.”

Country Garden reported profit slightly ahead of estimates. The Guangdong-based builder’s core profit rose 38.2 per cent last year to CNY 34.13 billion. That just beat the average estimate of 33.8 billion among analysts polled by Bloomberg, but was a far cry from the 126 per cent spike seen in 2017. Its revenue jumped by two thirds to CNY 379 billion, against a CNY 350 billion estimate.

Mr Yeung, born in a farming family, said migrant workers who quit farms for cities, will not go back to these rural areas, and will try to bring their children and families to China’s cities. He said that “However, they cannot afford homes in first or second tier cities. But they can afford homes sold for about 6,000 yuan per square metre in [smaller] counties.”

When asked about the performance of his daughter, Mr Yang Huiyan, who was appointed the developer’s co-chairman in December, he replied “very good” in English. Yeung founded Country Garden in 1992.

Mr Mo Bin, the company’s president, denied rumours that Country Garden was laying off staff amid a downturn in the industry, but confirmed it would continue to build homes in Forest City, the biggest private residential township in southern Malaysia.

Meanwhile, it has been a tough year for Country Garden. In August, Malaysian premier Mahathir Mohamad said the country would not let foreigners buy property in Forest City, to which Country Garden later said that his comments “may have been taken out of context”.

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Posted By : Rabi Wangkhem on Wed, 20 Mar 2019
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