CapitaLand Group’s development arm CapitaLand Development (CLD) has won the bids for two prime residential sites in China, one each in the cities of Wuhan and Chengdu, for a total price of RMB3.49 billion (about S$748 million).
CLD plans to build 1,581 homes catering to first-time home buyers and upgraders on these sites. The construction of both projects will begin this year.
The Wuhan site is located in the central business district (CBD), at the intersection of Fazhan Avenue and Huaihai Road in Qiaokou District. Clinched at RMB2.31 billion (about S$495 million), it measures 45,709 square metres (sq m) in site area with a gross floor area (GFA) of 146,000 sq m.
The Chengdu site is located in Chenghua District, next to the middle ring road of Northeast Chengdu. Secured at a price bid of RMB1.18 billion (about S$253 million), the site covers an area of 29,382 sq m with a GFA of 73,453 sq m.
Jason Leow, CEO of CLD, said: “China is one of three core markets for CLD, and we hold a long-term view of our business in the country. We are optimistic that the decisive moves taken by the authorities to reduce speculation will promote the healthy and sustained development of China’s housing market in the long term. We are further encouraged by the Chinese government’s recent pledge on policy easing, which is expected to set China’s real estate sector on the path to recovery. CLD stands ready to capitalise on attractive opportunities that have emerged, as seen in the two prime residential sites in Wuhan and Chengdu that we have acquired. CLD remains committed to China and we will continue to stay invested in the market to build quality real estate products and deliver healthy returns for our stakeholders.”