Real estate sector at crossroads

Han highlighted three areas that need attention if sound growth is to be maintained: building government-subsidized housing, tapping the markets in second-tier cities, and diversifying its mix of real estate products.

As a large-scale SOE, Poly Group says it will unswervingly assume its social responsibilities and support the government by actively taking part in the construction of government-subsidized housing.

By 2012, the group had 37 government-subsidized housing projects under construction throughout the country, with a construction area of 3.4 million square meters.

Poly Group is also already tapping the markets in second-tier cities, he added.

It has a presence in 25 provinces and 60 cities, and plans to increase its presence in more second-tier cities, such as Taiyuan, the capital of Shanxi province.

Diversifying Poly Group's real estate products is another way for the group to strengthen its real estate arm.

"Besides building residential property, we will develop other products such as urban complexes and combine functions of residential and entertainment housing, among other measures" Han said.

Although land is the main raw material for real estate companies, compliance with the government's macro-economic controls is also important.

The group's real estate business also enjoys advantages such as a good access to the capital market, Han said.