KSH (+2.5 cents today) now 47.5 cents. Pretty cool.
Which could point to the Gaobeidan project receiving solid pre-launch orders. To recap, KSH Executive Chairman Choo Chee Onn said at the recent AGM the official launch date to be Oct 2019.
The project launch had been delayed a couple of times, first due to Beijing’s cooling measures which required the homes construction to be 30% completed before sales can start.
Then delayed again last October 2018 due to “the uncertainties caused by the trade war”.
Mr Choo revealed that the main reason for the delay was the additional cooling measures which restricted the sales to local residents only. Thus the rich folk from Beijing were not allowed to buy. The local government has eased these restrictions. Now, non-locals will have to pay social security for 3 years to be eligible to purchase in Gaobeidian.
Even with this condition, the JV company is confident enough to launch the first 100,000 sqm, about 820 units at a price of RMB 8,000 per sqm. They will quickly release more units once 50% of the units are sold. Although the launch price is a far cry from the RMB 20,000 psqm in nearby Baoding after news of the Xiong’an SEZ was released, the Gross Margin is a respectable 50% as their cost is around RMB 4,000 psqm.
another update today: ".....the Group’s construction order book in Singapore is more than
S$502 million. The order book is expected to contribute to the Group’s financial
results up to the financial year ending 31 March 2024.