China's 'second-tier' cities will fuel property growth By Wang Ying (chinadaily.com.cn) Updated: 2009-03-11 19:17 By 2020, more than 90 percent of China's commercial property trading will take place in second- and third-tier cities, presenting a slew of opportunities for real estate players who do not simply focus on places like Beijing and Shanghai, a new property report says.
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The report, released by real estate consultancy Jones Lang LaSalle (JLL) on Wednesday, showed that over the next decade, enormous development potential exists in China's 40 secondary and tertiary ranking cities.
"China's second- and third-tier cities continue to grow and experience dynamic development. With massive infrastructure investment, these markets are increasingly accessible at a time when the focus is on domestic consumption rather than export-oriented," said Michael Klibaner, head of research for JLL Shanghai.
The report, titled "China 40 - the rising urban stars", postulates that although the retail market in China's secondary cities may face turbulence in the short term, cities such as Changsha, Wuhan and Wenzhou possess relatively undeveloped retail markets, and are well-positioned for a period of substantial growth. http://www.chinadaily.com.cn/bizchina/20...
Real estate consulting and information services - includes tailored applications to meet the needs of developer clients at various stages of the project development and sales process. The consulting services is divided into land acquisition consulting and property development consulting. E-House offering an enhanced service by its real estate information database and analysis system called CRIC (China Real Estate Information Circle system). System provides up-to-date and in-depth information covering residential and commercial real estate properties in all regions in China. This has proven to be a very effective tool, among other things for E-House - against competition in the industry, which by the way remains strong and continually challenged by Century 21 and Coldwell Banker. There is no disputing at this point in my opinion, to China’s embracing the capitalistic approach in its economy thus pushing country’s direction into a more modernized, accessible and resourceful economy.
By the middle of this century, the country’s urbanization rate will rise to 75% or so in order to support its overall modernization process, placing the improvement of housing construction and human settlements development at the top of the government’s agenda.
Mr. Zhou added, "We have also begun an initiative to market our CRIC system to up to 10,000 developers and other real estate related companies across China and establish a subscription-based membership system. With our expanding database, we're optimistic that CRIC will continue to grow in popularity in China's real estate industry, further help to enhance the E- House brand and become an increasingly important source of our revenues." Fourth quarter revenues from real estate consulting and information services were $13.2 million, an increase of 207% from $4.3 million for the fourth quarter of 2007. Full-year 2008 revenues from real estate consulting and information services were $49.8 million, an increase of 480% from $8.6 million for 2007. The increase was primarily due to substantial consulting revenues derived from strategic arrangements the Company entered into with major developers covering multiple cities and projects and an increase in the number and size of consulting projects completed for other developers. The increase also resulted from the completion of a number of consulting projects associated with land transfer in 2008.
Real estate prices in China's top cities ease 0.6% in May Story Comments (2) Alert Email Print ShareBy MarketWatch HONG KONG (MarketWatch) -- Real estate prices in China's 70 largest cities fell 0.6% in May from a year earlier, according to data released Wednesday by the National Development and Reform Commission and the National Bureau of Statistics.
Against the month of April real estate prices, which includes those of new and secondary-market homes, prices were up 0.6%, the report said.
The statistics bureau said prices of new homes fell in 41 cities in May from a year earlier, with the largest declines seen in Shenzhen and Shijiazhuang, which fell 6.9% and 6.3% respectively.