Some developers are getting out of the crowded development area and are moving into commercial property.
Agile Property, a Hong Kong-listed company, which used to mainly focus on residential development, announced the launch of six commercial projects in Zhongshan, a prefecture-level city in Guangdong Province this year, with a total area of 200,000 square meters.
Vanke, the largest residential real estate developer in China, has spent $146.40 million for a plot in Dongguan, Guangdong Province, to build a 60-story building mostly for commercial uses.
Beijing Capital Land (BCL), a Hong Kong-listed developer whose major businesses used to focus on developing high-end residences, said at the end of last month that it would build five more Outlets shopping malls within three years, and the total number will reach 30 in five to 10 years.
Kitty Cheung, head of investor relations at BCL, told the Global Times that the company had been preparing for the commercial properties for several years, and it will combine both residential and commercial investment properties together to ensure the company’s profits increase stably.
Ling Ke, the Chairman of Gemdale Group
, said at an investors’ meeting that while residential development has been the major money maker over the past 10 years, the next 10 years will see the growth of commercial developers.
Dalian Wanda Group, China’s most successful domestic commercial developer, has its main focus on hotels, office buildings and department store chains.
Alibaba.com announced other developers including COFCO Property and GreenLand Group have also announced that they are also setting their sights on commercial development as a long-term investment opportunity. Now all these companies need to acquire the skill to manage their new commercial properties.