CapitaLand buys Hangzhou prime residential site for S$213.27mn

The site has potential gross floor area of 80,105 sq.m. located in the city’s upcoming Grand Canal central business district.

CapitaLand Limited, through its wholly owned subsidiary CapitaLand China Holdings, has secured a prime 32,040-square-metre residential site in Hangzhou’s Gongshu District for RMB1,113.98 million (S$213.27 million) in a government land tender. This translates to about RMB13,906 (S$2,662.35) per square metre per plot ratio. CapitaLand plans to build an estimated 700 units of mid- to high-end homes on the site, with the launch of the first phase expected in 2013.

The site has an approved potential gross floor area of 80,105 square metres and is in Hangzhou’s upcoming Grand Canal central business district. It enjoys scenic waterfront views and is surrounded by lush greenery. Hangzhou, as the provincial capital and the largest city of Zhejiang Province, is set to play a strategic role in China’s economic growth as the government’s Yangtze River Delta Region Planning gains full steam.

Mr Jason Leow, CEO of CapitaLand China Holdings, said: “CapitaLand has been closely linked to China’s urbanisation process since the Group entered the country 17 years ago. Hangzhou, one of the most established commercial centres in the Yangtze River Delta region, has maintained double-digit GDP growth over the past 20 years, according to a CapitaLand report.

Disposable income of urban residents has also achieved sustained growth of more than 10% in 2011. This translates to strong growth potential for the Hangzhou property market and CapitaLand is well-positioned to provide quality homes to the city’s residents. Our latest land acquisition reiterates CapitaLand’s determination to expand our footprint in Hangzhou.”

The site is located 4 kilometres away from the Wulin Square city centre and 5 kilometres away from the scenic West Lake. Nearby amenities include Dadou Food Street, Xiaohe Ancient Street, universities and supermarkets which cater to residents’ living needs.

The latest acquisition will be CapitaLand’s fourth development in Hangzhou since it first entered the market in 2006. Hangzhou is located in East China, a region that has played a significant role in CapitaLand’s China portfolio and remains the Group’s largest market in the country. The Group’s current portfolio in Hangzhou comprises I-World, one of the city’s first fully-furnished residential projects launched in 2007; Imperial Bay, a luxury residential project with panoramic views of the Grand Canal; and Raffles City Hangzhou, slated for completion in 2014.