Due to the issuance of many favorable policies on traffic and infrastructure construction, the average housing price increased 17.8% y-o-y in Zhuhai in 2005, and the trading volume was 1.5 million square meters, up 43.7%. Meanwhile, the price of commercial residential houses increased more rapidly in Zhuhai in 2006, the average price reached RMB 4581, up 23.5% y-o-y; the trading volume amounted to 1.66 million square meters whose growth rate decreased to 10.7%.

However, the land supply volume in Zhuhai is limited, and only 700-800 thousand construction square meters commercial land was available annually in 2005 and 2006, so the promising prospect of Zhuhai real estate market attracted the entry of many Chinese and foreign large real estate companies, such as New World, Vanke, Gemdale, Yanlord etc, and the land competition becomes increasingly fiercer. 

In addition to obtaining Huafa New City West via auction, Huafa also accelerated the step of merger and acquisition. It acquired the equities of two projects of Hongmenlou and Riviera. Up to the first quarter of 2007, the company had owned 3.08 million square meters land reserve in Zhuhai, which can be developed and used in the following five more years.

Ratio of Huafa Sales Value to Zhuhai House Sales Value

Supply and Demand Structure of Commercial Residential Houses

 Huafa Land Reserves

3 Enterprise Development 
3.1 Development Business and Land Reserves 
3.2 Land Reserves 
3.3 Group Reform 
3.4 Financial Results
3.5 Profitability Forecast 
3.6 Risk Analysis