The Group continues to adopt a selective land acquisition policy with strategic focuses on key Tier 1 or 2 cities in order to secure quality land bank with returns. The land bank of development properties in Mainland China totalled 3.6 million square metres at the end of June 2019.
Underlying demand for quality properties in Mainland China remained firm in top-tier cities. However, as primary sales pricing is effectively controlled by government which seriously affects future project profitability, the Group has been prudent and not made any new land purchase for nearly one year. As at the end of June 2019, the net order book increased to RMB23.5 billion for 0.8 million square metres.
Mainland China Land Bank Distribution
|Region and Key City||GFA (s.m) as at End-Dec 2018||% of Total|
|Eastern China Subtotal||1.5||42%|
|Western China Subtotal||1.1||31%|
|Foshan & Guangzhou||0.3||8%|
|Tianjin, Dalian & Wuhan||0.1||3%|
|Southern, Northern China and Other Regions Subtotal||1.0||27%|