Whether China's property sector is a bubble waiting to pop, CapitaLand, a developer based in Singapore is not looking at putting their investments somewhere else, CNBC reports.
According to Arthur Land, chief financial officer of Capita Land, talking to CNBC Tuesday, half of the nearly 30-40 billion Singapore dollars assets of the company are invested on Shanghai and Beijing, and the company's focus is set on 10 cities in Asia. Capita Land has investments spanning across the continent.
"Anyone who has been in these two cities recently will wonder whether there is actually any slowdown at all. And if you throw in the other two top tier-one cities, Guangzhou and Shenzhen, we're about two-thirds to 70 percent situated in these four cities," says Lang, also pointing out that only about 4 percent of the company's assets in China are invested on tier-three cities.
"Short term, we are cautious like everyone else is because of all the volatility we're seeing in China," Lang said, noting nearly half of the company's assets are on the mainland. "But in the long term, we're still very confident and very optimistic."
After clocking in 11 billion yuan worth of residential sales in the first three quarters of 2015, Lang expects Capital Land to close to a total of 14 billion yuan ($2.15 billion) for the year.
China's property market is on its way to stabilizing even in the most stagnant residential sector, despite the previous fears of overbuilding. This has been through government's efforts to cool the overheated market and Bank of China's persistent cutting of interest rates since November 2014.
True enough, there have been historic high sales for China's top 30 cities in a full-year scale, rising 20 percent, based on the date cited by Nomura.
The country, however, is still facing high vacancy rates in several regions, but mostly outside the country's major cities.
