ZHONGSHAN, Guangdong - China's recent tightened policy on purchases of residential properties will not affect the sales and leasing business of Colliers International in the country, according to one of the company's top executives.
Instead, residential projects will help foster new areas of growth for the global real estate services organization, said Piers Brunner, CEO of Colliers International (Asia).
"We noticed sales of residential properties have become harder because of the central government's tightened policies. But we still believe in the market," he said.
Guangdong has become a key market for the company's growth plans since Colliers entered the capital city of Guangzhou province in 1993.
"We are looking for more offices in other cities as well to aid expansion," Brunner said.
The company also opened an office in Foshan, a booming commercial city adjacent to Guangzhou, last year.
Colliers has opened 480 offices in 61 countries and regions, helping to generate $1.9 billion in annual revenue for the company in 2010.
China represents about 35 percent of Collier's Asian revenue, according to Brunner.
"We are experiencing high growth in the Pearl River Delta region, given that Guangzhou represented at least 25 percent of the company's revenue in China last year," he said.
Brunner said the company is attaching great importance to expansion in a number of cities in Guangdong, because the southern province has provided a good market position for business growth.
"If we get enough strategic projects in the city, we will set up formal offices. But even without offices, we can still provide services in all the cities in Guangdong," he said.
Last month, the company signed an agreement with the Lihe Group to provide leasing and management services for a commercial twin tower in Zhongshan, Guangdong province.
This year, the government has adopted various measures to curb rising property prices, such as restricting residents in 35 major cities from buying second or third homes. Other measures include higher downpayment requirements for mortgages, the imposition of property taxes in Chongqing and Shanghai, and a slew of monetary policies that have raised borrowing costs for developers.
"What we see is that there is an underlining of the demand for residential property. We believe that more people are interested in investing in real estate because of the high demand for premier residential properties," said Brunner.
Colliers focuses on high-end and premier residential projects, a market that is expected to register rapid growth in the country, he said.
"We can help manage the sales and leasing of top projects by adding our value to these projects," said Brunner.
"Meeting the accommodation needs of corporate and individual clients is a core strength for our residential division."
Collier's residential services include orientation, home selection, home inspection, lease negotiation and lease maintenance, according to the company.
Commercial projects helped generate about 70 percent of the company's 2010 revenue, according to Brunner.
"But the interesting change is that sales of residential projects have been growing since we began operating our residential sales and leasing business 18 months ago. It will help bolster our confidence in the market," he said.
