Singapore’s CapitaLand has acquired two residential development sites in Guangzhou, South China, for RMB2.05bn (€261m).

CapitaLand plans to build up to 1,300 homes on the sites by 2021, catering to first-time buyers and upgraders.

The Guangzhou sites are located in the heart of Zengcheng District, an area designated for the city’s future second international airport. It is already an established industrial and commercial area.

Local government plans are to grow ZengCheng’s population from a current 1.15 million to 2.1 million by 2020, CapitaLand said.

Lim Ming Yan, president and group CEO, said CapitaLand was gathering momentum in replenishing its land bank in China.

It also plans 2,100 new homes in Chongqing, where it was awarded a mixed-use site by Chinese authorities in June.

“These 3,400 units in Guangzhou and Chongqing are a timely addition to our China residential pipeline, as we ready ourselves to release another 4,000 units for sale by the end of 2018,” he said.

CapitaLand remains optimistic about prospects for China’s residential market, where strong housing sales had continually contributed to Group earnings, Lim said.