presentation by jason leow ceo, capitaland china · 11/12/2013 · presentation by jason leow ceo,...
TRANSCRIPT
1 CapitaLand Presentation
CapitaLand Investors’ Day
Presentation by Jason Leow
CEO, CapitaLand China
12 November 2013
2 CapitaLand Presentation
This presentation may contain forward-looking statements that involve risks and
uncertainties. Actual future performance, outcomes and results may differ materially
from those expressed in forward-looking statements as a result of a number of risks,
uncertainties and assumptions. Representative examples of these factors include
(without limitation) general industry and economic conditions, interest rate trends,
cost of capital and capital availability, availability of real estate properties,
competition from other companies and venues for the sale/distribution of goods
and services, shifts in customer demands, customers and partners, changes in
operating expenses, including employee wages, benefits and training,
governmental and public policy changes and the continued availability of
financing in the amounts and the terms necessary to support future business. You are
cautioned not to place undue reliance on these forward looking statements, which
are based on current view of management on future events.
Disclaimer
November 2013
Agenda
• 3Q 2013 Performance Update
• Residential Business in China
• Raffles City and Integrated Developments
• Concluding Remarks
Raffles City Shanghai, China
3Q 2013
Performance
Update
5 CapitaLand Presentation
3Q 2013 Residential Sales Performance
November 2013
YoY sales remains healthy
• Launched ~700 units for sale in 3Q 2013
• 78% of launched units sold @
@ Units sold includes options issued up to 30 Sep 2013
* Includes Raffles City strata apartments.
255
955812
736911
707
0
500
1,000
1,500
2,000
2,500
YTD Sep 2012 YTD Sep 2013
Re
sid
en
tia
l U
nits*
1st Quarter 2nd Quarter 3rd Quarter
432
1,891 1,776
1,266
1,959
1,047
0
1,000
2,000
3,000
4,000
5,000
YTD Sep 2012 YTD Sep 2013
Sale
s V
alu
e (
RM
B m
illio
n)
1st Quarter 2nd Quarter 3rd Quarter
2,398
1,978
4,204 4,167
↑21% Y-o-Y
6 CapitaLand Presentation
Residential Homes Handed Over
November 2013
180 230 269
1,123 93
234
0
500
1,000
1,500
2,000
YTD Sep 2012 YTD Sep 2013
Resid
ential U
nits
1st Quarter 2nd Quarter 3rd Quarter
143 284 768
2,324 141
1,498
0
1,000
2,000
3,000
4,000
5,000
YTD Sep 2012 YTD Sep 2013
Valu
e (
RM
B m
illion)
1st Quarter 2nd Quarter 3rd Quarter
1,587
542
4,107
1,052
↑193% Y-o-Y ↑290% Y-o-Y
YTD Sep 2013 – TOP Projects:
The Paragon,
Shanghai
The Pinnacle,
Shanghai
Beaufort,
Beijing
The Loft,
Chengdu
7 CapitaLand Presentation
New Residential Launch
November 2013
The Metropolis, Kunshan – Launch of new block
• 272 units launched on Oct 26
• Sold ~ 95% of launched units
within first 4 days. Sales value
~ RMB316m
The Metropolis, Kunshan
8 CapitaLand Presentation
Recent Construction Start in Shanghai
November 2013
Nanmatou, Shanghai – Phase 2 Construction Started
Construction schedule on track: piling completed, structural construction in progress
Residential
Business in
China
The Pinnacle, Shanghai, China
10 CapitaLand Presentation
Completed Consolidation of
Residential Business in China
CapitaLand China Residential Projects
CapitaLand Township Projects
Former CapitaValueHomes Projects
CapitaLand China Total Pipeline: >65k units, >7m sqm in GFA
11 CapitaLand Presentation
Consolidated Residential Portfolio
Beijing
Shanghai
Kunshan
Ningbo
Guangzhou
Chengdu
Shenyang
Tianjin
Wuxi
Hangzhou
Foshan
Wuhan
Pipeline sufficient for the next 4 to 5 years • 27 residential projects • Total pipeline of >65k units and GFA of >7m sqm • Deepening presence in 5 city clusters
Xi’an
12 CapitaLand Presentation
CapitaLand Township Projects 5 projects in 4 cities; ~39k units and GFA ~4m sqm
The Botanica, Chengdu
GFA ~1m sqm, 98% launched)
Central Park City, Wuxi
(GFA ~655k sqm, 19% launched)
Lake Botanica, Shenyang
(GFA ~1.1m sqm, 18% launched)
% Launch based on units launched against project’s estimated total units as at Sep 2013.
Parc Botanica, Chengdu
(GFA ~362m sqm, 19% launched)
La Botanica, Xi’an
(GFA ~2.9m sqm, 25% launched)
13 CapitaLand Presentation
Former CapitaValueHomes
4 projects in 3 cities; ~6,300 units and GFA ~627k sqm
New Horizon & Wanxiang Plot II, Shanghai The Lakeside, Wuhan
The Rivervale, Guangzhou
14 CapitaLand Presentation
Healthy Project Pipeline in China
Dolce Vita, Guangzhou The Paragon, Shanghai
The Loft, Chengdu
CapitaLand China consolidated: >65k units and GFA >7m sqm
The Metropolis, Kunshan
Beaufort, Beijing iPark, Shenzhen
15 CapitaLand Presentation
Long-term Benefits from Consolidation
November 2013
CapitaLand China
Post-consolidation: • Residential to focus
on mass market, 1st time home buyers and up graders
• Capabilities to manage large scale projects
• Opportunities for economies of scale and bulk purchase
16 CapitaLand Presentation
Residential53%
Investment Properties*
39%
Strategic
Investments
8%
Total Assets Allocation
November 2013
As at Sep 2013, CLC Total Assets is S$8.3b * 23% of Investment Properties relate to RCs’ strata assets
Well balanced Portfolio of Trading vs Long Term
17 CapitaLand Presentation
• Datansha Island which comprises of
a land area of 3.55 km2 is located in
the western part of downtown
Guangzhou.
• The Project will be developed in
three main phases.
• CapitaLand has been assisting the
Liwan District Government in the
urban planning of the Project.
• The Master Plan was approved in
Oct 2012.
• CapitaLand has entered into a
framework cooperation agreement
with Guangzhou Liwan District
Government to jointly develop the
island project of approximately 3.55
km2 .
Datansha Island
Artist Impression of Datansha Island
Introduction
November 2013
18 CapitaLand Presentation
Village Houses
School
School
Residences
F&B Belt
Village Houses
Warehouses
Village Commercial
Village Commercial
Residences Total Area of Island: 3.55 sq km
Metro Interchange
Metro Station
Datansha Island Site Conditions
19 CapitaLand Presentation
Administrative Office Military Other Public Land
Commercial Public Greenery Warehouse
Culture Ecological Greenery Water Bodies
Sport Plaza Resettlement Residential
Hospital Car Park Resettlement Commercial
Educational Support Facilities
Residential Transport Facilities
Primary/Sec School Environment Facilities
Total Saleable Developments of approx. 1,971k sqm
Site Area
(‘000
sqm )
GFA
(‘000
sqm)
% of total
GFA
Saleable Residential (15 plots) 313 1,417 23%
Saleable Commercial (6 plots) 107 554 9%
Resettlement Homes 148 724 12%
Village Commercial 291 1,562 26%
Government Housing 65 296 5%
Public Facilities 306 175 3%
Military, Car Park, Plaza 61 42 1%
Greenery/ Water bodies 751 - 0%
Road, Network & Others 841 - 0%
Not for Development 672 1,271 21%
Total 3,554 6,041 100%
Datansha Island Master Plan
Raffles City and
Integrated
Developments
Raffles City Chengdu, China
Zhang Minjie,
Ca
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21 CapitaLand Presentation
Continuous growth of quality assets
RCSRCB
RCC
RCN
RCSZ
RCH
RCCN
RCCQ
0
500
1000
1500
2000
2500
3000
2012 2015 2017 & beyond
CFA : 0.8m sqm
GFA: 0.6m sqm
Value: RMB 17b
CFA : 1.9m sqm
GFA: 1.4m sqm
Value: RMB 41b
CFA : 3.1m sqm
GFA: 2.2m sqm
Value: RMB 62b
Raffles City Portfolio Outlook
CFA ‘000 sm
Note: GFA includes basement retail area
2012 2015/2016 2018 & beyond
November 2013
22 CapitaLand Presentation
Raffles City Portfolio
November 2013
Pipeline of Quality Assets with Stable Rental Income
8 Raffles City development with a construction floor area of 3.1m sqm
Raffles City Shanghai
Raffles City Beijing
Raffles City Chengdu
Raffles City Hangzhou
Raffles City Changning Raffles City Chongqing
Stabilized Newly Opened Under Construction
Raffles City Ningbo Raffles City Shenzhen
Year 2012 2015/2016 2018
23 CapitaLand Presentation
CapitaLand’s Significant Stake in
Raffles City Projects
November 2013
Raffles City Projects
CL’s Total
Effective Stake
CL’s Stake Held
through CLC
Portfolio Value
(100% basis)
Completed Projects RMB ’Bil
Raffles City Shanghai 27.8% 22.3% 6.6
Raffles City Beijing 49.8% 40.0% 3.6
Raffles City Ningbo 49.8% 40.0% 2.4
Projects Under Development
Raffles City Chengdu 49.8% 40.0% 4.8
Raffles City Hangzhou 49.8% 40.0% 6.5
Raffles City Changning 36.8% 25.6% 9.8
Raffles City Shenzhen 73.0% 73.0% 7.1
Raffles City Chongqing 51.7% 31.3% 21.7
TOTAL: 62.5
S$ 12.9B
The above stake and values are as at 30 September 2013 * Amount includes strata assets of RMB 22.2 Bil (~S$ 4.6B) , approx 35% of portfolio value
*
*
24 CapitaLand Presentation
Stabilised Asset – Raffles City Shanghai
November 2013
• Full committed occupancy for retail
mall and office tower
• Reconfiguration of larger anchor
tenant space into smaller units
• Annualised NPI yield on cost ~18 %
Raffles City Shanghai
New tenants and active Marcom activities
25 CapitaLand Presentation
Stabilised Asset – Raffles City Beijing
November 2013
• Stable performance – Over 99% committed occupancy for retail
mall and office tower
– Above 90% occupancy for serviced
residences
• New brands & trade remix in 3Q 2013
• Annualised NPI yield on cost ~13 %
Raffles City Beijing
New tenants; brands include CK Performance, Fossil, Speedo
26 CapitaLand Presentation
Performance Snapshot of Stabilised Assets Raffles City Shanghai
Raffles City Beijing
26.2
24.5 24.4
20.0
22.0
24.0
26.0
2010 2011 2012
Retail Footfall (mil)
1,014
1,093
1,127
950
1,050
1,150
2010 2011 2012
Tenant Sales (RMB mil)
369 383
402
300
350
400
450
2010 2011 2012
Total NPI (RMB mil)
94
166
186
50
100
150
200
2010 2011 2012
Total NPI (RMB mil)
6.2
7.8 8.2
5.0
6.0
7.0
8.0
9.0
2010 2011 2012
Retail Footfall (mil)
411
536
582
300
400
500
600
2010 2011 2012
Tenant Sales RMB'm
November 2013 CapitaLand Presentation
27 CapitaLand Presentation
Newly Operational Assets
November 2013
- Strong committed occupancy of over 99% for retail mall
• Celebrated 1st year anniversary, with total footfall of 11 million
shoppers since opening
- T1 office block completed in late June 2013
- T2 office block achieved 57%* leasing commitment
- Opening of Ascott Raffles City Chengdu in 4Q 2013
Raffles City Chengdu
* As at 11 November 2013
28 CapitaLand Presentation
Newly Operational Assets
November 2013
• Stable performance of retail mall
– Committed occupancy of 97%
– Opening of anchor tenant (including supermarket) has boosted
sales and shopper traffic
• Growing occupancy for office tower
– Committed occupancy of 79%*
– Mix of domestic as well as international tenants
Raffles City Ningbo
* As at 8 November 2013
29 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Hangzhou
Site Area 40,335 sqm
Podium: Retail (B1-L16)
116,000 sqm
T1: Office (L8-L16) 27,567 sqm
T1: Svc Resi (L18-L31) 26,000 sqm
T1: SOHO (L33-L59) 33,000 sqm
T2: Office (L7-L24) 41,000 sqm
T2: Hotel (L26-L50) 45,000 sqm
T2: Apts (L52-L57) 10,000 sqm
Total GFA 283,567 sqm
Plot Ratio 7.03
Car Park 1,249 Lots
Total CFA 392,868 sqm
30 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Hangzhou
69% structural completion
Raffles City Hangzhou Target Opening in 2015
31 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Shenzhen
Site Area 53,725 sqm
Apartments 72,729 sqm
Office 54,575 sqm
Retail 88,835 sqm
Hotel 21,095 sqm
Total GFA 237,500 sqm
Car Park 2,021Lots
Total CFA 399,444 sqm
Phase 1
Phase 3
Phase 2
Phase 1
Phase 2 (Raffles City)
Phase 3
32 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Shenzhen
Construction progress on track
Phase 1: iPark Target handover of Block B in 4Q 2013
Phase 2: Raffles City Shenzhen
Raffles City Shenzhen Target Opening in 2016
Phase 3
33 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Changning
Site Area 60,845 sqm
Office T1 76,692 sqm
Office T2 30,175 sqm
Office T3 26,240 sqm
Retail 103,914 sqm
Other Public Facilities
155 sqm
Total GFA 237,113 sqm
Preservation Buildings
5,553 sqm
Other Facilities 12,623 sqm
Plot Ratio 3.9
Car Park 1,249 Lots
Total CFA 362,602 sqm
34 CapitaLand Presentation
Asset Under Development
November 2013
Raffles City Changning Target Opening in 2016
Raffles City Changning
East Sector West Sector
Aerial view: 17% completion
35 CapitaLand Presentation
Asset Under Development Raffles City Chongqing
Site Area 91,782 sqm
Office 154,000 sqm
Hotel 69,000 sqm
Serviced Apartment 30,000 sqm
Residential 340,000 sqm
Retail 224,000 sqm
Total GFA 817,000 sqm
Transport Hub 35,800 sqm
Bus Terminal 17,500 sqm
Subway Station 5,100 sqm
Ferry Terminal 13,200 sqm
Plot Ratio 8.9
Car Park 3,400 Lots (B1,B2,B3)
Max Height 550m (AMSL)
Total CFA 1.1 million sqm
Footnote:
GFA – gross floor area; CFA – construction floor area
AMSL– above mean sea level
36 CapitaLand Presentation
Asset Under Development
Raffles City Chongqing Target Opening in 2018
11% excavation work completed
Raffles City Chongqing
November 2013
2% shoring piles completed
37 CapitaLand Presentation
Hanzhonglu Mixed-use Site
November 2013
3-line metro interchange currently under construction
Plot 95 (Office/Retail)
Plot 92 (Residential)
Concluding
Remarks
Raffles City Chengdu, China
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39 CapitaLand Presentation
Concluding Remarks
November 2013
1. Improve long-term ROE
2. Deepen presence in 5 city clusters
3. Focus on execution to deliver shareholder value
4. Seek out new opportunities in residential and mixed developments
40 CapitaLand Presentation
Strategy for Sustainable Growth
November 2013
40
Where to focus? How to build a sustainable and competitive
business?
Optimal
Mix Trading and
Investment Assets
50:50
Focus on
Key
cities
Exposure to Tier
1 and Tier 2/3
Cities
70:30
Target real demand
for residential
First time
home
buyers &
Up-graders
Continue to build and
hone Mixed-use
development capabilities
Enhance
operational
competence and
scale economies, as
more mixed use
projects are
completed
Improving Long Term ROE
41 CapitaLand Presentation
Thank You
Appendices
Appendix 1 – Recent Land Transactions in Major Cities
Appendix 2 – China Macroeconomics Update
43 CapitaLand Presentation
Appendix 1 - Recent Land
Transactions in Major Cities
44 CapitaLand Presentation
Beijing Residential Land Transaction 3Q2013 Plot8(万科):
RMB6,567psmppr ASP:10,000
Plot5(中铁):RMB18,562psmppr
Ceiling:19,000
Plot4(恒大):RMB15,453psmppr
Ceiling:22,000
Plot3(懋源):RMB45,819psmppr ASP:40,000-50,000
Plot1(融创):RMB73,100psmppr ASP:50,000-70,000
Plot 6(恒大):RMB6,927psmppr
Ceiling:14,000
Plot9&10(融创):RMB20,162psmppr ASP:34,000-37,000
Plot13(万年基业):RMB19,463psmppr
ASP:25,000
Residential
Price-Capped
Note: ASP is short for surrounding residential average selling price
Plot11/12(北控/万通):RMB7,049psmppr
ASP:11,000-20,000(apt) 15,000-30,000(villa)
Plot2(中粮):RMB48,444psmppr ASP:50,000-60,000
Plot 7 (万科):RMB19,347psmppr
Asp:20,000(apt) 25,000-30,000(villa)
45 CapitaLand Presentation
Residential
Plot 8 (万科):RMB21,416psmppr
ASP:26,000
Plot 3 (安徽高速地产):RMB12,600psmppr
ASP:20,000
Plot 2 (中铁):RMB10,753psmppr
ASP:17,000 Plot 4 (名城):
RMB8,341psmppr ASP:17,000
Plot 5 (恒文投资):RMB14,106psmppr
ASP:21,500
Plot 9 (阳光城):RMB18,437psmppr
ASP:18,000
Plot 6 (卓涵):RMB15,433psmppr
ASP:18,000
Plot 1 (泰禾):RMB24,003psmppr
ASP:25,000
Plot 10 (保利):RMB14,086psmppr
ASP:18,500
Plot 7 (嘉华):RMB40,106psmppr
ASP:60,000
Shanghai Residential Land Transaction 3Q2013
46 CapitaLand Presentation
Guangzhou Residential Land Transaction
Plot 1 (保利置业):RMB 4,563psmppr ASP:7,000-9,000
Plot 3(保利置业) RMB 5,224 psmppr
ASP:8,500
Plot 2(绿地) RMB 6,597psmppr ASP:9,000-10,000
Plot 4 (越秀) RMB 9,761psmppr ASP:15,000-16,000
47 CapitaLand Presentation
Chengdu Residential Land Transaction 3Q2013
November 2013
NO. Site Winner
1 金牛区土桥村 重庆东原
2 青羊区万家湾 重庆东原
3 成华区北湖7号 中铁建
4 武侯区红牌楼 台湾远雄
5 成华区长春4组 成都交大工程
6 双流县华阳街道清河社区 中铁八局
7 成华区崔家店路 中粮
8 成华区青龙街道 四川蓝润实业
9 成华区青龙街道 四川蓝润实业
10 锦江区狮子山街道花果村 中铁
11 高新区大源片区08地块 建发
12 高新区大源片区10地块 合能
13 高新区大源片区07地块 建发
14 高新区大源片区09地块 中铁建
15 青羊区清波村 安徽海亮地产
16 高新区南部新区05号地块 保利
17 高新区南部新区06号地块 保利
18 锦江区花果村 华润
3rd Ring Rd
4th Ring Rd
1st Ring Rd
2nd Ring Rd
RCC
LOFT
卓锦万黛
卓锦城
1
2
3
4
5
6
7
8 9
10
11 12
13
14
16 17
15
18
重庆东原 RMB6,120 psm ppr
ASP: 9,000
重庆东原 RMB6,790 psm ppr
ASP: 9,300
中铁建 RMB6,000 psm ppr
ASP: 8,400
台湾远雄 RMB10,000 psm ppr
ASP: 11,000
成都交大工程 RMB5,500 psm ppr
ASP: 9,600
中铁八局 RMB3,412 psm ppr
ASP: 8,500
中粮 RMB7,920 psm ppr
ASP: 13,700
四川蓝润 RMB5,350 psm ppr
ASP: 8,000
四川蓝润 RMB5,100 psm ppr
ASP: 8,000
中铁 RMB5,030 psm ppr
ASP: 11,500
华润 RMB7,870psm ppr
ASP: 10,000
建发 RMB8,410 psm ppr
ASP: 13,600
合能置业 RMB7,680 psm ppr
ASP: 7,700
保利 RMB6,820 psm ppr
ASP: 13,000
保利 RMB6,760psm ppr
ASP: 13,000
中铁建 RMB7,840 psm ppr
ASP: 20,000
建发 RMB7,530psm ppr
ASP: 7,700
海亮 RMB7,950 psm ppr
ASP:12,000
48 CapitaLand Presentation
Chongqing Residential Land Transaction
Residential
Note: ASP stands for average selling price for surrounding residential
projects
Plot9(康田):RMB3,763psmppr
ASP: 10,000
Plot3&4&5(朵力):RMB3,763psmppr
ASP: 8,800
Plot6(钰鑫):RMB4,818psmppr
ASP: 8,800
Plot10(柏明):RMB4,863psmppr
ASP: 8,100
Plot1(华润):RMB4,127psmppr
ASP: 8,800
Plot2(中房):RMB4,399psmppr
ASP: 8,800
Plot7(美全):RMB6,630psmppr
ASP: 10,000
Plot8(通用):RMB4,685psmppr
ASP: 9,300
49 CapitaLand Presentation
Appendix 2 – China
Macroeconomics Update
50 CapitaLand Presentation
Beijing’s 7-Point Property Measures
November 2013
Source: Beijing Municipal Commission of Housing and Urban-Rural Development
On 23 October 2013, Beijing’s Municipal Commission of Housing and Urban-Rural Development announced seven strengthening measures (京七条) to stabilize home prices in Beijing
1. Emphasize constructing and managing end-user commodity housing 高度重视自住型商品住房建设和管理工作
2. Proper planning to ensure land supply 加强计划管理,确保土地供应
3. Unit size and pricing standards 合理确定套型面积和价格标准
4. Priorities given to family with Beijing hukou 明确销售对象
5. Speed up sales and registration management 加强销售和登记管理
6. Minimum holding period and appreciation tax 加强自住型商品住房的转让管理
7. Severe punishment for illegal and fraudulent purchasing behavior 严肃查处违法违规骗购行为
7-Point Measures 京七条 DETAILS:
• Owner occupied Price-capped housing 自住型商品住房项
• To be developed by private developers
•Target to supply no less than 20,000 units by
2013, and 50,000 in 2014
• Sizes will be controlled with flat sizes generally
below 90 sqm, and should not exceed 140 sqm
• ASP capped at 70% of prevailing market prices
for comparable properties with similar location
and quality
• Sold with priority to Beijing families or persons
above 25 yr old with no existing home ownership
• Minimum holding period of five years, and
capital gains tax of 30% after five years
ELIGIBILITY
Household Size (persons)
Household Annual Income RMB
Household Net Assets RMB
Below 3 Below RMB 88,000
Below RMB 570K
4 and above Below RMB 116,000
Below RMB 760K
51 CapitaLand Presentation
Beijing’s 7-Point Property Measures: Minimal Impact Expected
Source: Soufun
23,777
7,799
5,701
0
5,000
10,000
15,000
20,000
25,000
30,000
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Jan
-12
May
-12
Sep
-12
Jan
-13
May
-13
Sep
-13
ASP
(RM
B p
sm)
Beijing: ASP by housing type sold
Private Commodity Housing Price-Capped Housing Economic Housing
67.3% 86.4% 78.9% 64.4% 76.6% 77.2%
17.2%
8.7%17.3%
29.3%
18.1% 13.0%
15.5%4.9% 3.8% 6.2% 5.4%
9.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 (YTD Sep)
Beijing: % Breakdown units sold by housing type
Private Commodity Housing Price-Capped Housing Economic Housing
• In first nine months of 2013, Beijing sold approx 88,602 residential units, of which only 11,506 (13%) were price-capped homes: The pool of real demand for private housing remains substantial (77.2%)
• Current ASP gap between private commodity homes and price-capped housing very wide (>200%), and even if ASP is capped at 70% for this new price-capped program, unlikely to be any major shrinkage of private commodity housing pie, given the affordability of eligible price-capped buyers.
• Buyers of affordable housing are unlikely to be potential private commodity home buyers in the first place: Marginal buyers are low in numbers, and eligibility criteria prevents our target buyers from ‘buying down’.
• Given the pressure on profits due to price cap, there are concerns about the quality of such price-capped homes. We are of the view that CapitaLand China’s strong focus on product quality and delivery will make a great difference to potential buyers of mid-high end homes.
52 CapitaLand Presentation
Disposable Income per Capita in China Growing at Positive Rates
November 2013 Source: National Bureau of Statistics
•China’s disposable income per capita has been increasing at double digit rates for the past few years and looks set to continue so
•Tier 1 cities enjoy significantly higher levels of disposable income per capita than overall China; Growth rates of disposable income per capita slightly lower than nation-wide, given the maturity of these Tier 1 economies, but still displaying steady growth
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012
Yo
Y %
Dis
po
sab
le I
nco
me
pe
r ca
pit
a R
MB
Disposable Income per Capita
China Tier 1 Average China YoY % (RHS) Tier 1 Average YoY % (RHS)
53 CapitaLand Presentation
China Home Prices Continue to Increase
November 2013
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
May
-10
Jul-
10
Sep
-10
No
v-1
0
Jan
-11
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-1
1
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-1
2
Jan
-13
Mar
-13
May
-13
Jul-
13
Sep
-13
China - YoY % Change in ASP and GFA Sold
ASP YoY % GFA Sold YoY %
-1
69
-80
-60
-40
-20
0
20
40
60
80
Sep
-11
De
c-1
1
Mar
-12
Jun
-12
Sep
-12
De
c-1
2
Mar
-13
Jun
-13
Sep
-13
Number of cities on YoY price Change
Increase
Decrease
Whole of China 70 Medium and Large Cities
•Nation-wide home prices and volume sold have generally
increased YoY in 2013 to date, despite the property cooling measures announced in March 2013
•On a Jan-Sep 2013 basis, China-wide average selling prices rose by approximately 9% this year
• In the latest September 2013 data release by the NBS, 69 cities out of 70 experienced YoY increases in home prices
•Tier 1 cities such as Beijing, Shanghai, Guangzhou and Shenzhen reported more than 20% YoY gain in prices
* Pre-sales
Source: Soufun & National Bureau of Statistics
54 CapitaLand Presentation
Urbanisation Drives Real Demand for Homes
November 2013
Source: National Bureau of Statistics & United Nations World Urbanization Prospects 2012
26.4%
35.9%
49.2%
52.6%55.6%
61.0%
65.4%68.7%
0
10
20
30
40
50
60
70
80
100
200
300
400
500
600
700
800
900
1000
1100
1980 1985 1990 1995 2000 2005 2010 2011 2012 2015E 2020E 2025E 2030E
Urb
aniz
atio
n R
ate
(%
)
Po
pu
lati
on
(m
illio
n)
Urban population (LHS) Urbanization rate % (RHS)