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Hong Kong property developer New World Development plans to invest 10 billion yuan in land in top-tier cities in mainland China next year, calling the end of China’s property market crash.
“Now is the bottom, and it’s going to slowly recover,” its chief executive Adrian Cheng Chi-kong said in an interview with the Financial Times. “See I’m very optimistic that in the next one or two years, it will be recovering very, very well, and it’s a good opportunity to start acquiring our war chest, in land and assets.”
The group would invest the 10 billion yuan over one year on land in top-tier cities such as Shanghai, Guangzhou, Hangzhou and Shenzhen, he said.
The group’s healthy gearing ratios and capitalization, and its experience in the mainland, gave it an advantage in the Chinese auction market, he said.
“We don’t have much competition anymore because a lot of local developers are financially strained. They’re very distressed.”