Pan Hong Property Group, a developer of residential projects in China, expects to sell more homes this year amid a rebound in the real estate market.

The Hong Kong-based developer, which is building four properties in the southeastern Chinese cities of Yichun, Fuzhou, Huzhou and Nanchang, plans to boost the amount of real estate it will sell by 50% from about 40,000 square meters (430,000 square feet) in 2009, Executive Chairman Wong Lam Ping said.

 

Property prices in 70 Chinese cities fell 0.1% in June from the previous month, snapping 15 months of gains, according to state data, as the government restricted loans to developers in the past year and introduced controls on mortgages for second and third homes to contain property prices.

 

The measures have “addressed fundamental imbalances,” Wong said in an interview in Singapore yesterday. China’s housing market will now “develop in a more stable and healthy way,” he said.

 

Sales volume in China may increase and home prices are expected to post a “small gain” as early as in the fourth quarter, he said.

 

Singapore-listed Pan Hong yesterday reported a 27% increase in first-quarter earnings to 13 million yuan ($2.6 million) from 10 million yuan a year earlier. The stock fell 1% to 48 cents today, after advancing 2.1% yesterday.