Shining Building Business Co (鄉林建設) yesterday approved plans for two joint-venture building projects in New Taipei City as land supply dwindles in the Greater Taipei area.
With total sales of NT$4.5 billion (US$143.3 million), the two projects are to feature mid-priced apartments targeting first-time buyers, as is it difficult to find buyers for more expensive homes due to tightened credit controls and tax hikes, the company said.
“The company has no choice but to focus on joint-venture building projects in recent years given the decreasing land supply,” Shining communications manager Cheng Wen-cheng (鄭文正) said by telephone.
The Taichung-based developer said it would stick with a plan to launch NT$30 billion-worth of new housing projects in Taiwan per year, even though it is seeking faster expansion in China.
The builder, the core unit of Shining Group (鄉林集團) — which owns The Lalu (涵碧樓), a Taiwanese luxury hotel brand — said it intends to roll out new construction volumes of NT$30 billion to NT$40 billion per year in the Chinese market.
Shining chairman Lai Cheng-i (賴正鎰) said last month that he intends to raise the volume to NT$100 billion given the quick pace of urbanization in China and the value of the company’s brand in the market.
Shining owns land in Qindao, Shandong Province; Nanjing, Jiangsu Province; and Chengdu, Sichuan Province, Lai said.
Besides property development, the group is tapping into the tourism business in China, Lai said.
One of the two joint-venture building projects is an apartment complex of 200 units on a 1,739.45 ping (5750.2m2) plot in New Taipei City’s Sanchong District (三重) — the first time the developer has built in the district.
Shining plans to roll out the 15-story presale project in May or June next year, hoping to generate NT$2.5 billion in revenue, or NT$12.5 million per unit, Cheng said.
The other project features 150 small apartments on a 1,119.16 ping plot in Sinjhuang District (新莊), where Shining has completed three projects, Cheng said.
The builder is unlikely to meet its target for construction volume this year due to a bearish market and slow land acquisition, Cheng said.
The company introduced a NT$3 billion housing project in Taipei’s Beitou District (北投) and a NT$2.6 billion project in Taichung.
It might launch a NT$5 billion presale project in the capital’s Wanhua District (萬華) next quarter if land acquisition proceeds smoothly, Cheng said.
As of last month, the year’s revenue totaled NT$76.61 billion, down 69.31 percent from a year earlier, company data showed.
Shining shares were down 1.44 percent at NT$13.7 at yesterday’s close, weaker than the TAIEX’s 0.34 percent gain, Taiwan Stock Exchange data showed.
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