[photopress:real_estate_Tianjin.jpg,full,alignright]Tianjin property prices have been escalating at a rate of 15 to 20% annually in the past two years. Property consultants and agents said with President Hu Jintao endorsing the city’s Binhai New Area as a special economic zone, the upward trend is set to continue.
In his 17th National Congress report, the Chinese President announced that the special economic zones — where experimental reforms will be carried out — would include Tianjin’s Binhai New Area and Shanghai’s Pudong New Area. It was the first time that Binhai was mentioned.
Binhai, which includes Tanggu, Hangu and Dagang districts, will see a series of financial reforms in the banking industry, fund-raising methods and foreign-exchange controls, according to the State Council.
Xavier Wong, head of research at Knight Frank said more than 70 of the world’s largest 500 enterprises, such as Motorola, IBM, HSBC Holdings Plc (0005), Samsung and Exxon Mobil Corp, have already set up operations in the area.
In the first half of 2007, 14 such enterprises have added more capital into their Tianjin projects.
According to the Statistical Bureau of Tianjin, foreign direct investment into the city in the same period was US$2.58 billion, up 27.5% from a year ago.
Xavier Wong said, ‘Seeing as Binhai now has the blessing of the central government, Tianjin is likely to become an increasingly important economic centre within the Bohai Rim Region.’
Tianjin’s urban areas — including Heping, Hexi, Hebei, Hedong, Nankai and Hongqiao districts — have also recorded increasing flat prices since 2001.
Clement Leung executive director for China valuation for Knight Frank said Tianjin flat prices still ‘lag far behind’ those in first-tier cities.
He said, ‘The average residential prices in Tianjin remain approximately 40% and 50% below the average in Beijing and Shanghai respectively.’
Source: The Standard