Hong Leong Holdings (China) recently held a ground-breaking ceremony for its latest residential project in the Longquanyi District (龙泉驿区) in Chengdu, China. The project was developed in response to the municipal’s urban development strategy for the eastern suburbs.

An estimated RMB 1.4 billion (approximately S$280 million) has been invested in the residential project, named Springdale Park (龙润丰锦), and it is expected to be completed in 2020.

The project is an exclusive 567-unit low density housing development in the Longquanyi District, right next to the scenic Longquan mountain range. The project sits on a 40,000 square metres plot with a total gross floor area of approximately 118,000 square metres. The project will also benefit from Chengdu City government’s plan to develop the Longquan Mountain Urban Forest Park (城市森林公园), which will be the largest of its kind in the world.

In April 2017, Chengdu announced its urban development plan that included a strategy for its eastern area. The strategy was to spread the core functions of the city outwards, alleviating the problems of crowdedness, traffic congestion and inadequate public services. This “eastward advancement”, or “东进” strategy, is also seen as a way to promote the development of Chengdu.

After the government announcement, the Longquanyi District, which is an hour’s drive from the city centre, became one of the hot spots for investment. Hong Leong Holdings was the first Singapore real estate developer to respond to this “eastward advancement” strategy.

Hong Leong Holdings (China) - General Manager (Business Development) Mr Lim Mian Wei said in an interview with Lianhe Zaobao, a Chinese daily in Singapore, that the Sichuan provincial government is making efforts to build the second airport in Chengdu, named Tianfu International Airport (天府国际机场), which will drive the development of eastern suburbs area and bring more opportunities.

In terms of real estate developers, he pointed out that with the “eastward advancement” of Chengdu's urban development, the government is also attracting talents to build supporting services and facilities, including residential projects. He believes that compared with the city centre, the most obvious advantage of Longquanyi District is the beautiful environment and high-quality air.

Although the competition is fierce, Mr Lim believes that Singapore real estate companies remain attractive in Chengdu. “Being a Singapore developer gives us an edge. We are known for sustainable building concepts such as good functional layout and incorporation of green building features. This is an important consideration when Chinese buyers look at a project,” he said.