[photopress:harbin.jpg,full,alignright]Now that key cities are becoming seriously turbo-charged in price many real estate companies are looking to the country’s second- and third-tier cities, 30 of which have emerged as the best business targets.
Jones Lang LaSalle has undertaken a study to assess the real estate opportunities and prospects beyond China’s familiar first-tier coastal cities.
In the latest ‘China 30’ White Paper, the firm maps out the country’s current and future major business locations.
The research highlights 30 second- and third-tier cities that are expected to be of interest to real estate occupiers, investors and developers. It predicts these cities will become the benchmark against which real estate performance in China will be measured over the next decade.
Kenny Ho, head of Jones Lang LaSalle, said, ‘While many opportunities still exist in China’s core cities, rising prices, increased competition and often the greater complexity of doing business in such high-profile locations are encouraging businesses and real estate players to consider the option of new, cheaper and potentially more rewarding markets further afield.
‘The economic ripple initiated by the huge success of the primary cities of Shanghai, Beijing, Guangzhou and Shenzhen is finally washing into a new generation of Chinese cities.’
Anna Kalifa, head of Jones Lang LaSalle Research for Beijing, said, ‘These cities have moved beyond being industrial outposts. We’re seeing major expansion across China by professional service firms and retailers.’ She said secondary locations like Tianjin and Hangzhou that are close to primary locations such as Beijing and Shanghai are particularly booming in terms of investment and retailer demand.
The report also highlights five second-tier cities — Suzhou of East China’s Jiangsu Province, North China’s Tianjin, Hangzhou of East China’s Zhejiang Province, Chengdu of Southwest China’s Sichuan Province and Dalian of Northeast China’s Liaoning Province — that are already making their mark.
Nanjing, Wuhan, Chongqing, Qingdao, Shenyang, Dongguan, Xiamen and Xi’an have also been successful in attracting foreign direct investment.
Some third-tier cities, notably Harbin which has an ice festival which gives us an illustration, Fuzhou, Wuxi, Jinan, Ningbo, Zhengzhou, Changchun and Changsha are beginning to taste success in creating real estate demand.
Other third-tier cities such as Kunming, Nanning, Nanchang, Hefei and Changzhou are poised to realize their full growth potential.
Source: China Daily