Real Estate
Year in review
Amid a continued slowdown in property sales in China, the government removed purchase restrictions in 41 cities in the second quarter of 2014. By the end of 2014, there were only five cities, namely, Beijing, Shanghai, Guangzhou, Shenzhen and Sanya, where these restrictions remained. This action was followed by a decision to loosen loan restrictions in September and lower interest rates in November. The first signs of a sector recovery emerged in late 2014.
During the year, a total of 2.1 million m 2 of residential properties was sold, mainly from projects in Zhuhai Mangrove Bay, Nanhai Mountainside Lake, Huizhou Triumph Town, Jiading the Center and Qingpu Zhujiajiao New Town.
At the end of 2014, CITIC Limited had a total land bank of 22.6 million m 2 . Four new parcels of land were acquired during the year, including an office building project on Cao’an Road in Putuo District of Shanghai; a residential, commercial and serviced apartment project in Nanxiang, Shanghai; a residential project near Slender West Lake in Yangzhou; and a residential project in Humen of Dongguan city, in Guangdong province.
In 2014, given considerable growth in the supply of new office space in first tier cities such as Beijing and Shanghai, competition in the commercial property market intensified. However, demand for Grade A office buildings in prime locations continued to rise. During the year, major investment properties maintained a high occupancy rate and stable income.
Looking ahead, the removal of purchase rules and loosening of loan restrictions are likely to improve residential property sales across the market. CITIC Limited will continue to market and sell existing projects and develop smaller-sized residential units, catering for its target markets. The company will also consider partnering with landowners to co-develop projects.
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Zhongguo Zun, Beijing
(100% owned)
Site area:
11,500 m2
Gross floor area:
437,000 m2
Usage:
Office
Located in Chaoyang District, once completed Zhongguo Zun will have a height of 528m, making it the tallest building in Beijing and a new landmark for the city. Construction began in 2013. The underground structure was completed in 2014. Delivery is expected in 2019. |
Lujiazui Harbour City, Shanghai
(50% owned)
Site area:
249,400 m2
Gross floor area:
437,000 m2
Usage:
Office, retail, hotel and
residential
Lujiazui Harbour City, previously used as a shipyard by Shanghai Shipyard Co., is located on the south shore of the Huangpu River in central Shanghai. This project comprises eight high-end office buildings, a five-star hotel and serviced apartments, recreational, commercial, dining and entertainment facilities, and luxury residential properties. Two high-end office buildings have already been delivered to China Construction Bank and Agricultural Bank of China. Three other office buildings are currently under construction and will eventually be sold to China ICBC Bank, China Life and the United Overseas Bank (UOB). The Mandarin Oriental Hotel and serviced apartments are now in operation. |
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Zhuhai Mangrove Bay, Zhuhai
(100%" owned)
Site area:
272,200 m2
Gross floor area:
839,100 m2
Usage:
Residential
Located on the west bank of Qianshan River in the city of Zhuhai, the project is a luxury residential development near the landing point of the Hong Kong-Zhuhai-Macao Bridge, with Qianshan River to the east and Macau to the south. The project is being developed in four phases. Since December 2009, phases one and two have been delivered, and construction of phase three is underway. In 2014, a total of 88,000 m 2 was sold, with an average selling price of RMB24,800 per m 2 . |
CITIC New Town, Beijing
(80%-100% owned)
Site area:
303,600 m2
Gross floor area:
728,200 m2
Usage:
Residential
Located in the southeast of Beijing on the western part of Yizhuang outside the Fifth Ring Road, CITIC New Town adjoins the Nanhaizi Country Park which covers 12 km 2 of land. The project will feature superior views and an international cultural ambience. CITIC New Town is a residential and commercial development which includes apartments, villas and semi-detached houses. The project is being developed in phases, with work commencing in December 2010. In 2014, a total of 40,000m 2 was sold, at an average selling price of RMB31,000 per m 2 . |