Xinyuan Real Estate (NYSE:XIN) today announced that it has acquired a land parcel in Changsha for RMB 688.9 million (US$112.2 million), as the residential developer made its third land purchase in China’s second-tier cities this year.
Xinyuan’s new 89,460 square meter site is located in a planned new central business district in the western part of the capital of central China’s Hunan Province. In a statement, the Company said it plans to develop a total GFA of 268,381 square meters of high rise residential apartments, low-density residential apartments/condos, and commercial property on the site.
Given the projected GFA of the development the accommodation value of the land sale works out to RMB 2,567 per square metre.
Commenting on the Beijing-based company’s decision to develop housing in the second-tier city, Mr. Yong Zhang, Chairman of Xinyuan, commented, “We have been studying the Changsha market for a long time and are excited to enter this fast growing capital city in central China with strong consumption power and healthy supply demand balance in the local real estate market.
The Changsha purchase is Xinyuan’s third major land buy in China this year after it announced in mid-February that it had committed RMB 1.29 billion ($213 billion) to acquire new land in Chengdu, Sichuan province and in the resort city of Sanya on the island province of Hainan.
Xinyuan also made the news last week when it began marketing apartments in its Brooklyn project over the Internet to its clientele in China.