China Vanke Co., the nation’s largest developer by sales, posted a 28.1 percent gain in first-quarter profit as an easing of property curbs enticed buyers back into the market, boosting home prices.
Net income rose to 830 million yuan ($128 million) in the three months ended March 31 from 650 million a year earlier, the company said Wednesday in a Shenzhen stock exchange filing based on Chinese accounting standards. Revenue rose 64.3 percent to 14.6 billion yuan.
Vanke’s focus on small- to medium-sized apartments helped it benefit from an easing of home-buying policies as authorities sought to revive real estate investment and to dissolve a home glut. China’s home-price gains accelerated last month, with values excluding government-subsidized housing climbing in 62 cities of 70 tracked by the government in March, compared with 47 in February.
Gross margin dropped in the first quarter from a year earlier, board secretary Zhu Xu said in the statement.
China’s property market has had an uneven recovery amid government stimulus, with home prices in the hubs of Beijing, Shanghai and Shenzhen surging as those in smaller cities have trailed. The government moved away from a one-size-fits-all property stimulus last month to allow more tailored approaches at the local level, introducing curbs in some of frenzied markets to cool the market.
— With assistance by Emma Dong