Vanke Purchases Land Worth CNY 6.9 Bn this Month

Source: Jinhua Times, ChinaScope Financial (Data)

+       China Vanke (000002: SHE) acquired a plot of land in the city of Shunde, Guangdong at a price of CNY 3,489 per GFA or a total of CNY 1.58 billion, 14.38 percent premium. The deal is the highest-recorded land transaction value in the region.

+       Vanke has spent a total of CNY 6.89 billion acquiring four plots of land since the beginning of this month. The CNY 6 billion the company had spent on land in July alone has surpassed the aggregate amount spent in 12H1. In August, the company’s land purchase cost was CNY 3.6 billion.

+       Statistics show that three Chinese real estate leaders (Vanke, Evergrande (3333:HKG), and China Resources Land (1109: HKG)) have spent a total of CNY 8.24 billion on land purchase so far this month, 50 percent higher than in August.

+       Analysts believe that developers have frequently been acquiring land due to the improvement of their financial situation, which came from recovering housing sales, declining idle housing stock, and greater land supplied by local governments.

As China’s largest developer, China Vanke (000002.SHE) enjoys a strong cash position, which allows the company to continue increasing its land reserves. In recent months Vanke has taken advantage of relatively cheap land offers in tier-two cities.

If you'd like to receive a daily e-mail update of ChinaScope Daily Dim Sum Newsletter, please contact us:newsletter@chinascopefinancial.com. If you'd like to try out ChinaScope Database, apply for a trial here