Keppel Land acquires residential site in Wuxi, China, for $387m

Keppel Land China, through its wholly-owned subsidiary, Keppel Lakefront (Wuxi) Property Development Co., has secured a prime 18.03-ha residential site in Wuxi, China, for a total consideration of RMB2,533 million ($387 million).

“China is one of Keppel Land’s core markets and we are committed to deepening our presence in the key cities of Shanghai, Beijing, Tianjin, Chengdu and Wuxi,” said Ang Wee Gee, CEO of Keppel Land.

Situated in a mature residential precinct within the Xinwu district, the site has a permissible gross floor area of approximately 3.88 million square feet. Keppel Land China plans to develop the site into a residential project comprising 2,053 high-rise, 456 mid-rise and 246 low-rise units.

According to China Real Estate Information Corp, in 2016, the residential transaction volume in Wuxi increased 49 percent year-on-year to reach 97 million square feet. Average home prices were up 12.5 percent year-on-year, reaching RMB8,923 ($1,363) per square foot in 2016. In 2017, home prices continued their upward trend. From January to September 2017, home prices reportedly grew 28 percent year-on-year to RMB11,241 ($1,717) per square foot, reflecting the strong demand for homes.