E-House Enterprise Holdings sees greater opportunity for growth as an effect of the high-speed railway that links Hong Kong and China. The company expects more property sales as Hong Kong enjoys improved residency rights in mainland China under the Chinese government's new permit policy.
The biggest real estate service firm reported a promising doubled profit for the six months of the year. The increase in their sales is caused by an expansion of its property agency E-House Fangyou that has currently had more than 10,000 outlets in 54 cities all over China. The company saw more than fivefold rise annually in total sales of new houses for developers.
The train was reported to link Hong Kong to 44 destinations in mainland China and it is scheduled to start its operations on September 23. Travelers to the "Greater Bay Area", 11 cities in the country's south, will enjoy fast access and the Chinese government plans to develop the area into a connected and innovation hub.
Huang Canhao, vice-chairman of E-House said during the interim results presentation on Monday that he believes that once the high-speed rail link launches, there will be a ramped up property and services sectors development in the Greater Bay Area and the mainland.
Huang added that Hong Kong citizens will enjoy the easier purchase of property in the Mainland and they will be granted access to a wide range of social and public services available for mainland residents. The new mainland China residence permits will be the tool for the Hong Kongers to enjoy their stay in the mainland. The applications for the cards of residence started on September 1.
The country's real estate market was unstable in recent months as the effect of the government's actions to stabilize the rapidly increasing price growth. The government's actions included price caps and restrictions on mortgage lending and strict rules on the eligibility of buyers.
Ding Zuyu, the E-House CEO, said that changes in local real estate policies in short-term have not caused any large price fluctuations in the property market.
There are 26 Chinese developers that have shared stakes with E-House which includes the top three real estate sellers, County Garden, China Vanke, and China Evergrande Group. E-house reported their revenues of 2.78 billion Yuan for the first six months of 2018. It is a 44.4 percent increase than their prior year's record. The owners of the company's profit increased this year by 256 percent to 567.5million Yuan.
