Looking ahead, we believe demand for properties will continue to rise in Hanzhong and surrounding areas, as the local economy and Gross Domestic Product (GDP) are continuing to improve rapidly under the China central government's guidance for the development of the economies in western regions. In addition to the 62,700 square meters land we acquired in May 2011, we are actively seeking additional land. We believe that continuous land acquisition will help ensure the sustainability of our business development. We also anticipate a strong fiscal fourth quarter, which is normally a peak season for the real estate market. In summary, we are very positive about the dynamics in our market and we feel confident that China HGS will continue its steady and healthy growth over the next several years.
China HGS Real Estate today announced that the Company has experienced brisk sales at its Yangzhou Pearl Garden Phase III Project in Yang County, Shaanxi province, following the project's opening in mid-February 2011. Based on price levels in February, 2011, China HGS could generate total revenues of about $22.9 million from sales of the Pearl Garden III project.
"We are very pleased to achieve such encouraging presale results from the Pearl Garden III project. Due to increasing demand for real-estate properties in the Yang County local market, the presale results significantly exceeded our initial expectations. The Chinese government recently launched a series of regulations intended to cool down the overheated domestic real estate market. Although these measures will affect the entire real-estate industry in China, including China HGS, we believe since China HGS' market focus is on Tier-III and Tier-IV cities, where most demands is generated from first time apartment buyers and the overall real estate market is less overheated, we believe we will experience only a limited impact from the central government's property control initiatives. Therefore, China HGS continues to remain optimistic and confident about its business growth prospects in 2011 and the following several years."
Considering the special circumstances of new regulation implemented by the Local Taxation Bureau, we hope our investors can understand this unusual temporary impact on our recognized revenue. We will be able to recognize the revenue backlog once the new invoice system becomes normalized and operational, which we expect to occur during the second quarter of fiscal year 2011. Therefore, we have reason to believe that our attractive pipeline of planned and currently under-construction projects will enable us to continue our business growth in the fiscal year 2011.