{"id":23931,"date":"2016-08-25T16:56:14","date_gmt":"2016-08-25T09:56:14","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/is-this-chinese-residential-projects-asking-price-worth-it\/"},"modified":"2016-08-25T17:05:20","modified_gmt":"2016-08-25T10:05:20","slug":"is-this-chinese-residential-projects-asking-price-worth-it","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/is-this-chinese-residential-projects-asking-price-worth-it\/","title":{"rendered":"Is this Chinese residential project\u2019s asking price worth it?"},"content":{"rendered":"


\nAgile has high hopes\u00a0for a tract of land in Guangzhou
\nBright pink clouds above Guangzhou, China\u2019s fourth-largest city. Image credit: ArtisticPhoto \/ Shutterstock.com
\nGuangzhou\u2019s Liwan district is considered a relatively backwards neighbourhood, far from rapid transit routes and wanting of luxury amenities. Apartments in the area command an average price of less than CNY20,000 (USD3,005) per square\u00a0metre.
\nLand developer Agile Property Holdings Ltd, however, is selling its proposed apartment project in the area at anywhere from CNY50,000 (USD7,500) to CNY60,000 (USD9,000) per sqm, the South China Morning Post reports.
\nAgile\u2019s chief financial officer Sam Cheung believes Guangzhou\u2019s property market will eventually catch up with Beijing and Shanghai, where values for new homes surged 15 percent and 23 percent, respectively, over the past year. Guangzhou prices grew by 4 percent over the same period, in comparison.
\nAgile had acquired the 22-acre parcel for the apartments last week at CNY35,000 (USD5,259) per sq m, making Agile the city\u2019s newest \u201cland king,\u201d a term ascribed to mainland developers making record-breaking land purchases.
\nMore: Mixed bag for Asia in new Prime Global Rental Index
\nAlthough the parcel\u2019s cost may justify the apartments\u2019 values, some analysts are still left mystified. Huang Tao, a project manager at Guangzhou-based real estate agency Centaline, tells the Post that Agile\u2019s asking price is too high, since properties above CNY40,000 (USD6,000) per sq m is \u201calready considered luxury in Guangzhou.\u201d
\nHan Shitong, deputy director of Guangdong Real Estate Industrial Research Association, said that Agile\u2019s proposed price range would be considered expensive even in Guangzhou\u2019s new central business district Zhujiang New Town. \u201cA land acquisition cost of 30,000 yuan per square metre is not cheap,\u201d he said.
\nAccording to the Post, Agile\u2019s core net profit ratio stood at 4.1 percent in H1 2016, way down from the industry average of 10 percent. The company\u2019s total debt ballooned last year to CNY40 billion (USD6 billion).
\nRead next: Asia has 5 of the 10 hottest luxury markets \u2014 here\u2019s where
\n
\nSource : property-report.com
\nRead more…Is this Chinese residential project\u2019s asking price worth it?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Agile has high hopes\u00a0for a tract of land in Guangzhou Bright pink clouds above Guangzhou,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-23931","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-6dZ","jetpack-related-posts":[{"id":96045,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/capitaland-clinches-two-prime-residential-sites-in-guangzhou-china\/","url_meta":{"origin":23931,"position":0},"title":"CapitaLand clinches two prime residential sites in Guangzhou, China","date":"August 15, 2018","format":false,"excerpt":"\r \u00a0CapitaLand is confident that the newly awarded residential sites in Guangzhou\u2019s Zengcheng District will achieve synergies with the ongoing Datansha Urban Redevelopment project (pictured) in the city\u2019s Liwan District, which is being developed into residential and commercial projects over phases. (Credit: CapitaLand) CapitaLand has claimed two of Guangzhou\u2019s prime\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":118315,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-listed-developer-shenzhen-investment-wins-plot-in-guangzhous-nansha-district-with-record-bid-of-us578-million\/","url_meta":{"origin":23931,"position":1},"title":"Hong Kong-listed developer Shenzhen Investment wins plot in Guangzhou\u2019s Nansha district with record bid of US$578 million","date":"August 21, 2020","format":false,"excerpt":"\r Hong Kong-listed Shenzhen Investment has won the bid for a plot of land in Guangzhou\u2019s Nansha district for 4 billion yuan (US$578 million), setting a new price benchmark in the Greater Bay Area city.The plot is located on Henglidao, an island in Nansha that will be developed into a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":104541,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sun-hung-kai-speeds-up-greater-bay-area-expansion-buys-site-in-guangzhous-nansha-district-for-us178m\/","url_meta":{"origin":23931,"position":2},"title":"Sun Hung Kai speeds up Greater Bay Area expansion, buys site in Guangzhou\u2019s Nansha district for US$178m","date":"March 1, 2019","format":false,"excerpt":"\r Sun Hung Kai Properties, Hong Kong\u2019s most valuable builder, said that it has bought a commercial plot near the high-speed railway station in Nansha \u2013 the geographic heart of the Greater Bay Area in Guangzhou \u2013 for 1.19 billion yuan (US$178 million).The site, close to Qingsheng station on the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119682,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/guangzhous-housing-watchdog-clamps-down-on-homeowners-colluding-to-inflate-home-prices\/","url_meta":{"origin":23931,"position":3},"title":"Guangzhou\u2019s housing watchdog clamps down on homeowners colluding to inflate home prices","date":"January 7, 2021","format":false,"excerpt":"\r The move by some homeowners in Guangzhou to collude on inflating prices has infuriated the housing watchdog, which is initiating stringent measures to cool the recent run up in property prices in one of the main Greater Bay Area cities.\r\rThe Housing and Construction Bureau of Guangzhou said on Wednesday\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41018,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/guangzhou-holds-out-as-chinas-december-home-prices-decline\/","url_meta":{"origin":23931,"position":4},"title":"Guangzhou holds out as China\u2019s December home prices decline","date":"January 18, 2017","format":false,"excerpt":"\r Guangzhou\u2019s residential property prices rose in December, becoming the only city among 15 of China\u2019s largest urban centres to defy the government\u2019s programme to deflate a potential price bubble in new homes. 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