Southeast Asia’s largest property developer, CapitaLand Ltd, is planning to double its portfolio in China in the next five years, as it expects the Chinese economy to expand over the next decade.
CapitaLand, which has S$10.4 billion worth of assets in China, said it expects new investments in all sectors in China, including serviced residences, apartments and shopping malls as well as the Raffles City brand of office and retail developments, said Lim Ming Yan, CapitaLand’s Chief Operating Officer.
“China’s market is very big, and it’s growing very fast,” said Mr. Lim. “We will continue to invest significantly in real estate sectors globally, and China will be a major one.”
Mr. Lim, who was CEO of CapitaLand China from 2000 to 2009, noted that China has surpassed Singapore as CapitaLand’s biggest market by assets in Q1, accounting for 37 percent of its holdings, while the city-state accounts for 35 percent.
CapitaMalls Asia Ltd, CapitaLand’s shopping mall operator, plans to double its portfolio to 100 malls from the current 53 over the next three to five years, while Ascott Holdings Ltd, its serviced residence unit, also aims to double its apartment units in China, from 6,600 to 12,000 by 2015.
According to government data, China’s retail sales climbed 16.9 percent in May and foreign direct investment rose 13.4 percent to US$9.2 billion. CapitaLand’s expansion into China comes after the Chinese government stepped up cooling measures, amid concerns that property was becoming unaffordable.
The government said last month that it will maintain curbs after tightening measures this year, with the introduction of property taxes in Chongqing and Shanghai, and impose a higher minimum down payment for second home purchases.
“The policy is effective,” said Mr. Lim. “Price increases have moderated significantly. Volume has dropped.”
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