For Golden Wheel Tiandi Holdings, the strategy of developing properties close to metro stations on the mainland has paid off in a market downturn.
“As market conditions have changed abruptly, projects in inferior locations will hardly entice buyers even if they are offered a discount. But the marketability of properties with easy access to metro stations will certainly do better,” said chairman Wong Yam-yin.
Taking advantage of the downturn, Wong said the small developer bought seven sites for 1.65 billion yuan (HK$2.05 billion) in the past two years.
Three sites are in Nanjing, while two are in Changsha, and one each in Wuxi and Zhuzhou.
The company also teamed up with Powerlong Real Estate to buy a plot in Yangzhou.
“These sites are either located close to metro stations or high-speed train stations,” Wong said.
The firm went on the buying spree after raising about HK$695 million in net proceeds from an initial share sale in January 2013. It also sold senior notes raising 600 million yuan in April 2013 and 300 million yuan in December last year.
