(Adds quotes from company officials, details on earnings)
* Posts 2013 net profit of 15.12 billion yuan vs 12.55
billion yuan yr ago
* Market needs to return to a logical level-executive
* Vanke, other developers heading overseas for growth
By Clare Jim
HONG KONG, March 6 China Vanke Co Ltd
, the mainland's largest listed developer, said on
Thursday that property prices are overheating in some Chinese
cities, the latest company to sound the alarm over real estate
in the world's second-largest economy.
The warning adds to a series of recent news - from home
price data to reports that developers have cut prices - that has
rattled investors and hurt share prices of some of China's top
property companies late last month.
"There's overheating in the market now. It needs to return
to a logical level," secretary of the board, Tan Huajie, said
after the company reported a 20.5 percent rise in full-year
profit, in line with forecasts.
Tan, echoing comments by private developer SOHO China Ltd
this week, also said rising land prices were
continuing to create "land kings" - nicknamed for their
record-breaking bids at land auctions.
Vanke said net profit for 2013 was 15.12 billion yuan ($2.47
billion), compared to 12.55 billion yuan a year earlier. That
compared with forecasts for a net profit of 15.51 billion yuan,
according to 13 analysts polled by ThomsonReuters
Vanke has joined a host of Chinese developers in venturing
overseas at a time when tighter liquidity is fuelling worries
over the outlook for China's property market.
It said last month it will team up with U.S. developers RFR
Holding and Hines on a residential tower in New York that will
target high-end customers. The development is Vanke's second in
the United States after it tied up with Tishman Speyer in
February last year on a project in San Francisco.
Vanke's president, Yu Liang, said on Thursday the company
had not set a budget for its overseas investment but it hoped to
learn from its foreign partners.
"Via these partnerships, we hope more people will know more
about Vanke and they'll come to us for other opportunities," Yu
China is expected to see 20 percent growth per annum in
outbound real estate investment in the next decade, up from
$11.5 billion last year, property agent Savills has forecast,
while some industry watchers said more than 20 developers are
expected to go abroad in the next two years.
Vanke said this week it had received long-awaited regulatory
approval to convert its Shenzhen-listed B shares to Hong
Kong-listed H shares, in a move that will allow it to tap a
bigger pool of investors to raise capital.
($1 = 6.1462 Chinese yuan)
(Additional reporting by Yimou Lee; Editing by Anne Marie
Roantree and Matt Driskill)