R & F properties: possibility to increase land reserves – Newsletter website hkej.com

Li Silian, chairman of R & F Properties (02777), said the situation on the capital market is somewhat tight, the real estate market on the continent is still growing and economic development is still rising. Buying land depends on cash flow, third and fourth low cities have great potential for development, opportunities increase land reserves and performance should rise reasonably. Currently, development in the mainland can only be carried out in cities in the second and third category, the land price in first-tier cities is not cheap.The policy to limit the price limit for purchases is & # 39; sharp & # 39; .The supply of land in the past few months is less, so the development has slowed.

The average financing costs increased from 5.12% to 5.62%, Li Silian is of the opinion that most internal housing performances reflect the increase in financing costs as a result of the increase in interest rates. R & F financing costs are expected to increase. will increase by 0.5%, which is within the average market price. There is a rising trend and the risks are being handled with care.

He said that the 400,000-square-meter Hainan Airlines project in Haikou was acquired at a land price of 4.95 billion yuan. Progress is normal. The delivery is expected to be completed in September and no other transactions will be made. In addition, the overseas property acquisition plan has been completed as planned and will not increase in the short term. The Kai Tak Gymnasium project has been approved for the construction of the Kai Tak Gymnasium as required by the Hong Kong government. Finally, at the end of the year, it will be announced which of the three eligible developers will be selected.

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