Mainland developer China Aoyuan Group building a new niche focus in booming Greater Bay Area

By Martin Choi martin.choi@scmp.com / https://www.scmp.com/business/article/3024306/mainland-developer-china-aoyuan-group-building-new-niche-focus-booming?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | September 11, 2019 11:57 AM SGT
Mainland developer China Aoyuan Group is betting big on the government's plans for the Greater Bay Area, shifting more of its focus to China's answer to Silicon Valley amid a slowdown in the overall Chinese property market.
The Guangzhou-based property group, which has about a quarter of its land bank in the Greater Bay Area, is developing a niche in the southern Chinese region, according to senior vice-president Jacky Chan Ka-yeung.
"No matter from a land bank or investment perspective, or sales contribution, we continue to hope that southern China will be our niche focus, in particular the Greater Bay Area," Chan told the South China Morning Post in an interview.
The Greater Bay Area, the size of Croatia and encompassing Hong Kong, Macau and nine mainland cities, aims to be China's innovation and financial powerhouse and embodies President Xi Jinping's goal of creating a hub to rival Silicon Valley or the Tokyo Bay Area.
Jacky Chan Ka-yeung, China Aoyuan Group senior vice president, expresses confidence in the Greater Bay Area's future. Photo: Edmond So alt=Jacky Chan Ka-yeung, China Aoyuan Group senior vice president, expresses confidence in the Greater Bay Area's future. Photo: Edmond So
The gross domestic product of the Greater Bay Area is expected to more than double by 2030, to as much as US$4.1 trillion, surpassing the UK economy, and its population to rise to as much as 88 million from the current 70 million, according to Morgan Stanley estimates.
"We think there is a lot of potential and growth for the Greater Bay Area, so we are quite optimistic about its long-term outlook," said Chan.
The Guangzhou-based developer reported a net profit of 2.8 billion yuan (US$394.5 million) in the first six months of the year, a 90 per cent increase from 1.47 billion yuan in the same period last year.
This came on the back of a 33 per cent increase in contracted sales for the first six months to 53.6 billion yuan (US$7.55 billion) from 40.9 million yuan in the...