(Yicai) Dec. 13 -- The real estate subsidiary of Chinese stationery giant Deli Group has acquired six land plots for a total of about CNY2.4 billion (USD329.8 million) this year, taking advantage of the lackluster land market.

Four plots are located in Ningbo's Ninghai county, where Deli Property Service is headquartered, and were purchased at a premium, according to the Zhejiang Daily Media Real Estate Research Institute. The remaining two are in Huzhou's Changxing county.

In 2021, about 3,900 houses were sold in Ninghai, around 2,700 or 69 percent of which were delivered by Deli Property. Huzhou is another market in which the company has been actively expanding in recent years. In Changxing, one in three families turn to Deli Property to buy homes, according to statistics from the company.

In the first 11 months of the year, Deli Property added CNY6.1 billion in new property value, ranking 79th among Chinese real estate developers, according to data from market research firm CRIC.

A main reason for Deli Property's increase in house reserves despite the sluggish real estate market is the strength and stability of its parent company. Deli was China's 291st-largest manufacturer with a revenue of CNY40.2 billion (USD5.5 billion) last year.

Compared to high-turnover property developers, large industrial groups have relatively lower debt ratios, more stable finances, and stronger capital, cash flow, and financing capabilities, according to CRIC. However, this does not necessarily mean that industrial groups will become big real estate developers.

As the land market cools down, companies with an industrial background can secure land in major cities, enhancing regional market competitiveness, said Liu Shui, enterprise research director at the China Index Academy. But because the industry size has peaked, the potential for expansion among them remains limited, Liu added.

Editor: Futura Costaglione