Oct 10 China Overseas Land & Investment Ltd
, the largest property developer by market value, and
smaller rival Shanghai Shimao Co Ltd posted strong
nine-month contract sales on Thursday, despite official efforts
to curb the market.
The government wants to prevent a bubble from forming and
head off unrest if people cannot afford to buy homes. However,
it cannot tighten too much as a strong property market has
helped offset an economic slowdown.
China Overseas Land reported contract sales of HK$111.8
billion ($14 billion) in the first nine months of the year, or
93 percent of its 2013 target of HK$120 billion. The nine-month
figure was a 22 percent rise from the HK$91.9 billion it
reported last year for the same period.
Shimao contract sales grew 44 percent to 10.14 billion yuan
($1.7 billion) in the January-September period.
"As of September, the company has already hit its full-year
sales target in advance," Shimao said in a statement posted on
the website of the Shanghai stock exchange.
Contract sales are recorded when buyers purchase a property
and are an indication of developers' future revenues.
Earlier this month, Poly Real Estate Group Co Ltd
posted a 17.24 percent in the first nine months,
while China Vanke Co Ltd said its nine-month sales
hit 128.5 billion yuan.
Developers have tried to counter the tightening steps, which
include taxes or restrictions on property purchases, by
targeting less developed cities.
Still, new home prices rose at their fastest in at least
2-1/2 years in August, with some large cities rising around
double the national pace.
(Reporting by Lee Chyen Yee in SINGAPORE and Meg Shen in HONG