Madison Property AG
Madison Property AG: Property markets far from nationwide bubble
Madison Property AG / Key word(s): Miscellaneous 28.02.2011 / 09:53 * Chinese property markets in general are in stable condition * Chinese government actions to prevent overheating of markets show positive effects * Majority of provinces and cities still offer affordable residential properties * Sharp price increase only affects major cities like Beijing, Shanghai or Shenzhen Berlin, 28 February 2011 - The Chinese real estate markets are often referred to as overheated and in a state of an investment bubble. Chinese property developer Madison Property AG (ISIN DE000A0V9KR3 / WKN A0V9KR / Ticker MPD), operating mainly in the city of Chongqing and the area of Qingdao in Shandong Province, draws another picture. The fundamentals of the overwhelming majority of regional Chinese property markets are still in a stable condition. Signs of an overheating are only to be seen in the few Tier 1 cities such as Beijing, Shanghai or Shenzhen. 'We understand, that the condition of the Chinese real estate markets is often characterized by descriptions of the situation in the most popular major cities. But from our point of view as a player in these markets, residential property is still available at affordable prices in other areas except the few major cities', says Qingtong Tian, CEO and founder of Madison Property. For example, according to the National Bureau of Statistics of China, the prices for residential properties in Qingdao showed a 9.0% rise during the last two years. In the same time, prices in Beijing increased by 24.4%. According to Madison, government actions to prevent an overheating such as restrictions for mortgage credit volume, requirements for equity ratios of up to 50% or special real estate taxes already wind down the situation, too. 'There has been a sharp price increase in the major cities. But the situation is far from an overall nationwide real estate bubble. Furthermore, most of our projects for the financial year 2010/2011 have already been sold. That minimizes the effects of government actions on us', states Mr. Tian. About Madison Property AG Madison Property AG is a German stock corporation under the laws of Germany with its legal seat in Berlin. It is the holding company of Madison Property Group Limited which operates as a large scale property developer with its local subsidiaries in China, mainly in the Shandong Province and the municipality of Chongqing. Founded in 1998, Madison already completed and successfully sold 14 projects/project phases. It is focused mainly on residential properties with high quality and travel as well as leisure properties. Madison is recognised as a Class I property developer by the People's Republic of China Ministry of Housing and Urban-Rural Development and can therefore undertake projects nationwide without limitation on the construction scale. For further information please contact: Kirchhoff Consult AG Dr. Kay Baden T: +49 40 60 91 86 34 F: +49 40 60 91 86 60 E-Mail: baden@kirchhoff.de or visit www.madisonproperty.de Disclaimer This publication constitutes neither an offer to sell nor a solicitation to buy securities of Madison Property AG. This document is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares of Madison Property AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act') and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the United States and the Shares will not be registered under the Securities Act. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 28.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 113643 28.02.2011
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