Shimao Real estate rose 3% to buy Xiamen block to build upscale community

Previously announced that the first 5 months of this year contract sales have been more than tens of billions of dollars and the annual target of 17 billion yuan of nearly 60% of the Shimao real estate, the share price this morning high 3.3% to 13.16 Hong Kong dollar, before the deal 276,000 shares. The company disclosed the progress of the purchase of land, said that it has successfully competed for 3.02 billion yuan in Xiamen city, Fujian Province, an area of 137,000 square meters of land plots, and plans to this site located in the Xiamen Lake Reservoir area of the plot to develop into a residential and business in one high-end integrated community.　　Xu Rongmao, chairman of the company, had said that Shimao would buy the land carefully and would be dominated by one or two-line cities. However, the land prices of the above plots have reached about 6,670 yuan per square meter, close to Xiamen, the first quarter of this year's average price (8,395 yuan per square meter). This indicates that the final sale price of Shimao Real estate must reach about RMB 18,000 per square metre to obtain the ideal profit, because the total development cost of the domestic property is generally 2.3 times times of the floor land price. But it is hard to say whether this can be achieved.