Eldery Care Services to promote growth in the property sector across cities
Mainland property developer Greenland Hong Kong has set its eyes in major Chinese cities to expand its elderly care services as a way to accelerate the company’s diversification into non-property businesses amid China’s real estate market slump.
Hou Guangjun, chief operating officer of the company, told the South China Morning Post that first-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen were targeted as the Hong Kong-listed developer looked to tap the growing demand among the mainland rich for better health care and senior care offerings.
“As we move into health care and elderly care businesses, Greenland Hong Kong is not chasing quick returns,” he said. “This is a segment that we want to develop ourselves into a market leader because we have our own advantages.”
“Elderly care has a huge market potential in China and it has yet to see an established market leader because the industry is still at a rudimentary stage,” said Cao Hua, a partner at private equity firm Unity Asset Management. “Those companies with large network and huge property resources have good opportunities to develop quickly.”
Since 2016, Beijing has imposed a series of austerity measures such as limiting home purchases and higher mortgage loan requirements to cool the real estate sectors, thwarting developers’ core businesses as the Chinese economy slows.
Developers are accelerating the collection of money owed to them by customers and the pace of property sales to maintain a sound cash position, as well as diversification into non-property businesses to sustain earnings growth.
Greenland secured pre-sale agreements worth 37.93 billion yuan with clients through selling unfinished flats in 2018, up 26 per cent from a year earlier, according to a stock exchange filing on Friday.
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