By Hui Ching-hoo (China Daily)
Updated: 2007-10-13 09:42

Hong Kong - China Properties Group, a medium-sized developer listed in Hong Kong, will follow the lead of foreign firms snapping up land on the mainland.

The company plans to add 5 million sqm of gross floor area to its land bank both this year and next, according to its managing director Wong Sai-chung.

"We are making remarkable headway for the time being," he said. "We recently bought two parcels of land in Chongqing, which took our additional land reserves to 2.6 millionsqm this year."

Wong said the company has enough money to bankroll the land acquisition.

"Our financial muscle is strong. We have HK$2.7 billion at our disposal."

Mainland cities including Beijing, Shanghai, Chongqing and Tianjin are China Properties' major targets.

Southwest China's Chongqing in particular tops the company's shopping list, as potential in the mainland's second-tier cities becomes more apparent, Wong said.

China Properties spent HK$2.3 billion on two parcels of land, covering more than 2 million sqm of gross floor area, in downtown Chongqing in August. The company plans to invest another HK$5.7 billion to develop projects on the land.

In recent years, Chongqing has become a magnet for Hong Kong property giants including Wharf and Hutchison Whampoa, given its relatively low land premium and roaring economy.

Property service firm DTZ said completed residential space in Chongqing increased 19.6 percent to 5.26 million sqm between January and May. The price of residential properties went up steadily to 2,800 yuan per sq m in the second quarter.