Yanlord projects draw strong response

YANLORD Land Group, China's high-end real estate developer, yesterday said it has pre-sold nearly one billion yuan (S$197 million) worth of properties in the month of September for three of its projects.

The company, which was included in the PrimePartners China Index (PPCI) yesterday , said it released and pre-sold a total of 31 duplex apartment units for the second phase of Yanlord Riverside City in Shanghai last Friday. All the units, representing a total gross floor area (GFA) of 15,113 sq m, were taken up on the day of the launch.

This grossed Yanlord 527.8 million yuan in pre-sale proceeds. The average selling price for this project surged 44 per cent to 34,924 yuan per sq m from 24,289 yuan per sq m achieved in July 2007.

Also on the same day, Yanlord released a total of 150 apartment units of Bamboo Gardens (Phase three) in Nanjing. Of that, 104 apartment units were sold on the day of the launch. That's a take-up rate of 69 per cent. Total GFA of 13,474 sq m was pre-sold, grossing an aggregate of 144.5 million yuan in pre-sales proceeds.

The average selling price for this development increased 26 per cent to 10,726 yuan per sq m from 8,500 yuan per sq m in May 2007.

The third project is in the southern city of Zhuhai. Yanlord said it released a total of 228 apartment units under the first phase of Yanlord New City Garden on Sept 16. Of that number, 180 apartment units were sold on the first day. The take-up rate was 79 per cent. Total GFA of 27,984 sq m was pre-sold, grossing an aggregate of 257.4 million yuan in pre-sale proceeds.

The average selling price for this development rose 15 per cent to 9,200 yuan per sq m, from 8,000 yuan per sq m achieved in May 2007.

Yanlord said the strong response to its projects reflects the robust underlying demand for quality accommodation. This is underscored by the strong economic performance, rising affluence of its population and the increasing urbanisation in mainland China.

Yanlord is one of investors' favourite China stocks listed on the Singapore Exchange. Since news about its inclusion in the PPCI late last week, and in anticipation of the liquidity inflows from China following the set-up of new Qualified Domestic Institutional Investor funds, its share price has been chased up by 23 per cent to $4.22 yesterday.

Source : Business Times - 2 Oct 2007