[photopress:real_estate_shenyang2.jpg,full,alignright]Domestic and foreign property investors are leaning more and more towards second-tier cities. Industry experts are of the opinion that they have strong economic fundamentals and the potential for bigger profit margins.
Chris Brooke, president & CEO of CB Richard Ellis said, ‘Though the property price of China’s second-tier cities has seen a big jump this year, I believe there’s still plenty of growth potential, compared with metropolitan cities that already have very high property prices.’
He said that some second-tier cities, such as Tianjin, Hangzhou and Chengdu, have been well explored, while others like Shenyang (seen in our illustration) and Wuhan are becoming more popular with investors.
He warned, however, that: ‘If the property price in those key second-tier cities grow too fast next year, real estate firms may turn their eyes to other second-tier cities and even third-tier ones.’
Sale prices of new residential apartments rose by 10.6% year-on-year in October, according to statistics from the National Development and Reform Commission (NDRC). Ningbo and Urumqi led the price rise, with rates of 19.1% and 18.5% respectively.
According to Eric Chan, deputy managing director of Savills, a UK real estate services provider, the first-tier cities will see major opportunities in high-end buildings, while those second-tier ones have bigger chances in industrial and logistics real estate.
Source: China Daily