Real Estate

All posts tagged Real Estate

Residential developers turn to eastern Bangkok

Published October 10, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30377237

Residential developers turn to eastern Bangkok

Oct 09. 2019
By THE NATION

830 Viewed

The new Krungthep Kreetha road in eastern Bangkok has become the latest destination of residential property developers where new projects are cropping up.

Piya Prayong, Chief Executive Officer of Pruksa Real Estate told Thansettakij newspaper that the eastern part of Bangkok is now the red ocean of land developers.

It is also the company’s golden area as 40 per cent of its horizontal project portfolio is concentrated in this zone.

The company has around 100 rai of land in the Krungthep Kritha-Wongwaen area, where it developed two projects and will launch another two residential development.

Chainid Adhyanasakul, chief executive officer of Property Perfect, said that the new Krunthep Kreetha road is considered a strategic transportation location linking Suvarnabhumi Airport with central Bangkok. It is also not far from the motorway and Airport Rail Link which will be connected with the Orange Line mass transit route running from the Thailand Cultural Centre to Minburi on the outskirts of the city.

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Centara signs joint agreement for first Japan hotel project

Published October 4, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30377020

Centara signs joint agreement for first Japan hotel project

Oct 03. 2019
By THE NATION

1,095 Viewed

Centara Hotels & Resorts, a leading hotel operator in Thailand, has joined with Japan’s Taisei Corporation and Kanden Realty & Development, to bring the Centara brand to Japan.

The three companies on Thursday (October 3) announced they had signed an investor agreement for Centara Grand Hotel Osaka, an upper upscale property with 515 keys that will occupy a gleaming 34-storey tower on a prime site in Osaka’s Namba district, the centre of leisure tourism for the city and the wider Kansai region. Centara’s first property in Japan is scheduled to open in mid 2023.

From left: Masahiro Takagi, Executive Officer and General Manager of Development Promotion Department, Kanden Realty & Development Co.,Ltd.; Munetaka Isoda, Director and Managing Executive Officer, Kanden Realty & Development Co.,Ltd.; Akehiko Tomita, Deputy Chief of Urban Development Division, Taisei Corporation; Katsuyuki Kanai, Senior Managing Executive Officer, Taisei Corporation; Suthikiati Chirathivat, Chairman of the Board, Centara Hotels & Resorts; Thirayuth Chirathivat, Chief Executive Officer, Centara Hotels & Resorts and Ronnachit Mahattanapreut, Senior Vice President of Finance and Administration, Centara Hotels & Resorts.

The investment partnership between Centara Hotels & Resorts, Taisei Corporation and Kanden Realty & Development marks Centara’s entry into one of the world’s most popular tourist destinations.

Osaka is a key gateway city and Japan’s third largest city, with a population of 2.7 million. Additionally, it is one of the leading Japanese destinations for international visitors, second only to Tokyo, and is considered the cultural heart of the nation. Along with popular attractions such as Universal Studios Japan and the city’s proximity to Kyoto, Kobe and Nara, Osaka is expected to see a further boost in tourism when the city hosts the World Expo in 2025.

“Extending the Centara footprint to Japan has been a long-term strategic objective for the company, and this is a major milestone for the Centara brand as we have successfully added the 14th country to our portfolio,” said Thirayuth Chirathivat, Centara’s CEO. “This an exciting opportunity to partner with Taisei and Kanden Realty & Development, whose outstanding track records have earned leading positions in construction and property development. We are looking forward to making Centara’s debut and ongoing development in other Japanese cities a great success.”

Katsuyuki Kanai, the senior managing executive officer for Taisei Corporation, said, “This project is in Namba, an important and bustling district of Osaka and a place of international exchange. It is directly connected to Kansai International airport, making it one Japan’s major gateway cities to the world. It is really a significant milestone both to Japan and to Taisei that Centara, representing Thailand in tourism and hospitality, has embarked on this venture in Namba, the perfect location in Japan for the development of an upper upscale hotel.”

Munetaka Isoda, the managing executive officer for Kanden Realty & Development, said, “As a major property development company based in Osaka, we are honoured to play an important role in this joint investment project to develop Centara Grand Hotel Osaka with such a significant and established Thai partner, Centara Hotels & Resorts, and with Taisei Corporation, which has a long and proven record of success. We are committed to working with you in making every effort to ensure the success of this project and we wish you all a very warm welcome to Osaka.”

The newly built hotel will occupy a stunning new 34-storey tower overlooking Namba Parks, with 360-degree views of the city, according to the release. The top floors will include a lounge along with customisable space for meetings and events, plus a rooftop restaurant sky bar providing panoramic views in every direction.

Facilities will include award winning Spa Cenvaree, a fully equipped fitness centre, a diverse selection of restaurants and banquet facilities. The hotel’s spacious lobby will welcome guests with touches of Thai and Japanese style and ambience.

The hotel location puts guests at the doorstep of some of Osaka’s leading entertainment, shopping and cultural attractions, popular with visitors and locals alike. A few steps away is Namba Parks, an architectural marvel and the city’s most distinctive mall, complete with a massive rooftop garden with cliffs, ponds, streams and waterfalls, making it a must-see for tourists. The Namba area, also known as Minami, is home to countless restaurants and bars, shopping venues, an electronics district, as well as one of Osaka’s most revered Shinto shrines.

Centara sees the addition of its first property in Japan as further proof of its expansion strategy, which calls for doubling the number of properties under its management by 2022.

Bangkok Citismart – a one-stop service centre for property buyers/renters

Published October 1, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376907

Bangkok Citismart – a one-stop service centre for property buyers/renters

Sep 30. 2019
Life One Wireless-Photo by AP (Thailand) Plc

Life One Wireless-Photo by AP (Thailand) Plc
By The Nation

545 Viewed

Bangkok Citismart Co Ltd (BC), a property agent under AP (Thailand) Plc, is offering one-stop-service solutions under the digital property agent ecosystem.

 

The company said it has set up an ecosystem to manage the purchase, resale and rental of properties and will also provide investment advice via a real-time digital platform. It will also work with 10 Thai and foreign partners to continuously deliver value return on all kinds of property assets under its management, BC’s managing director Kayon Tantichatiwat told the press on Monday (September 30).

In order to achieve its target, BC is setting up online centralisation, online networking and providing property consultation via Cloud.

For online centralisation, the company has brought together assets it is managing, such as condominiums, single-detached homes or townhomes, in seven prime locations across Bangkok so people can easily find residences in preferred locations. The BC Membership Dashboard also allows resellers and renters to manage their assets on a real-time basis.

BC’s teaming up with 10 partner digital platforms in Thailand and overseas is creating business opportunities and value return on all assets, has resulted in the biggest community for purchase, resale and rental in the world, and built a database in Thailand, Asia and Europe. The goal is to get assets under BC’s care digitally to win at least 96 million views per month or at least 4.8 million clicks per month by the end of this year.

Consultation via the Cloud involves providing all the information customers require before they can decide whether to buy, resell, rent out or invest as well providing market trends in categories that are of interest to customers. The platform, which can be accessed any where and at any time, also includes six features to accurately resolve customers’ pain points, including trend search, BKK 7 Zones, GURU Review, Innovative Map, Forecast Rate and Mortgage Calculator.

As for resale trends in the property market, especially condominiums, there are still plenty of opportunities. The main factor is the continuously rising price of land, which has resulted in the resale market becoming interesting once again. For instance, there’s a gap in the average price of condominiums in the Ploenchit-Chidlom area based on five-year data.

The difference between new condominiums and resale ones is around 40 per cent on average. Capital gain from the resale of luxury properties going for between Bt150,000 and Bt200,000 per square metre has risen by 5.92 per cent, reflecting clear opportunities in the resale market.

Among AP Thailand’s recently completed and ready-to-move-in flagship luxury condominiums, Life One Wireless on Wireless Road can be highlighted, given the potential of its beautiful location, good resale value in comparison to new projects as well as a limited supply of new properties in the area. Since the average resale value of Life One Wireless is around Bt179,000 per sqm versus the Bt330,000 per sqm average presale price of 2019 projects, it is destined to be another well-received development.

Developers flock to Bangna as district taking on new role

Published September 30, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376864

Developers flock to Bangna as district taking on new role

Sep 30. 2019
By Somluck Srimalee
The Nation
380 Viewed

Property developers plan to invest Bt227 billion, from 2017 to 2026, in the eastern Bangkok district of Bangna in view of the area becoming a new business hub and a linkage between the capital city and the Eastern Economic Corridor (EEC).

Several real estate developers have expanded their portfolio to the location  since 2017 with the development of  commercial buildings (retail, office, and hospitality) and residential projects.

The Mall Group plans to invest more than Bt10 billion next year  in the development of Bangkok Mall at Bangna intersection.

SF Development Co Ltd  is building a mixed-use project, Megacity Bangna, on a 200-rai ploy next to Mega Banga. The Bt67-billion complex, scheduled for completion in 2017, comprises office and residential buildings, a hotel and a hospital.

Meanwhile, Central Group has inaugurated Central Village – a Bt5 billion project,  as Magnolia Quality Development Corp announced a Bt90 billion mixed-use project, Forestias, at Bangna km 7.

Other developers – including LPN Development Plc, Ananda Development Plc, Property Perfect Plc, Land and Houses Plc, Sena Development Plc – have also branched into the area.

BTS Group Holdings Plc plans to invest Bt5-billion in an international school at the site of its existing residential property, Thana City.

“We see demands for an international school in Bangna, following the Bangkok Metropolitan Administration’s plan to develop a monorail system from Bangna to Suvarnbhumi that will connect with the BTS-Bangna station ,” BTS Group Holdings Plc’s chairman Keeree Kanjanapas said recently.

Number One Housing Development Co Ltd decided to launch a single-detached house project, Blue Lagoon, in the location because of the government’s policy to develop a mass  transit route linking the area to the EEC, said managing director Sutham Suwannapasri.

“Land prices in Bangna have increased by seven to eight per cent in line with the rising demand for residential projects,” Sutham added.

Teak Development Co Ltd’s chief executive officer Warut Panupattanapong said  the company is planning  a twinhouse or townhouse project in Bangna on a ten-rai plot, pending result of on-going  negotiations with the land owner.

“Property firms will have to launch both residential and commercial properties in the location as it develops into a new business district in the eastern part of Bangkok,”  said a real estate analyst.

Meanwhile, property agency CBRE said demand for warehouses has shown strong growth  in line with progress of  the e-commerce business, adding that Bangna-Trade road ( from km 18 to 24) is recommendable  for warehousing and logistics business, given its close proximity to the Eastern Economic Corridor.

DDproperty Property Market Outlook 2019 said the prices of townhouses in Bangna had risen nine per cent last year from 2017 amid growing demand, second only to the 10 per cent increase in Sathorn.

Vietnamese work space provider invests in the Thai market

Published September 25, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376687

Vietnamese work space provider invests in the Thai market

Sep 25. 2019

Photo by:UPGen

Photo by:UPGen
By The Nation
321 Viewed

Vietnam based UPGen, the largest flexible and custom work space solutions provider, marked a major milestone today as the Group announced its expansion into Southeast Asia that will see it launching new sites in both Bangkok and Kuala Lumpur in the fourth quarter of 2019.

The new sites will span nearly 10,000 square metres, increasing UPGen’s existing portfolio of smart office space managed across Hanoi and Ho Chi Minh City. UPGen is also strengthening its market-leading position in Vietnam by rolling out another 50,000 sqm of spaces in the country.

The continued expansion follows a significant equity investment by Northstar Group in 2018. A series B fundraising is currently underway.

“Southeast Asia’s economy is rapidly expanding, yet the region lacks an infrastructure which supports and enables fast-growing corporates or start-ups as they move through different stages of growth. I am excited to introduce our disruptive coworking model in Bangkok as well as Kuala Lumpur, two markets that faces unique challenges. We offer a solution to the real pain points which hinder growth in the Vietnamese cities that we operate in and see great potential for our approach and services in other, comparable, Southeast Asian cities. For us, it is about being a platform for growth for our clients and helping them achieve the success to which they aspire,” co-founder Nam Do said

UPGen’s flexible, 360-degree approach to managing work space means a client’s space has its own look and feel, equipped with the necessary tools for employees to do their job better, function efficiently, as well as be more productive. UPGen offers two main solutions to clients; UPBase – shared workspaces and UPScale – one-site custom solutions. UPBase helps clients create performance boosting work spaces with the flexibility and room to grow or downsize as needed one month to the next while UPScale creates a space for companies that is totally unique to their corporate style and has their own look and feel.

Many fast-growing corporates and start-ups call Thailand and Malaysia home. Small and medium enterprises (SMEs) make up more than 98 per cent of total enterprises in both countries and generate about 40 per cent of GDP. UPGen’s flexible work spaces provide a low-cost solution for businesses with fast-growth in headcount or looking for better space in a prime location, offering smart financing solutions by turning capital expenditure into sustainable, monthly operating expenses including the cost of the work space’s design and fittings.

Founded in Hanoi in 2016, UPGen is one of only a few home-grown work space operators to be pursuing regional expansion. As the country’s key community builder, the Group also helps create exposure, enables connectivity in the ecosystem, supports scalability, and attracts talent for clients. The corporates and start-ups it currently works with include Tiki, Vietnam’s largest e-commerce retailer, ride-hailing firm Be Group, dynamic media company Yeah1 and Standard Chartered, among others. UPGen also counts Vietnam’s VPBank as strategic partner.

Supalai announces latest condo project

Published September 25, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376674

Supalai announces latest condo project

Sep 24. 2019
Perspective Supalai Lite Thaphra-Wongwian Yai/Photo by Supalai Plc

Perspective Supalai Lite Thaphra-Wongwian Yai/Photo by Supalai Plc
By The Nation

91 Viewed

Supalai Plc, a listed real estate developer, has introduced its latest condominium project, Supalai Lite Thaphra – Wongwian Yai.

Project value Bt1.24 billion in investment, unit prices of the project start at Bt1.98 million.

The project comprises 419 units – ranging from studio, one bedroom, two bedrooms, and three bathrooms with usable space between 28 to 99.5 square metres each, said Tritecha Tangmatitham, the company’s managing director today (September 24). Booking is scheduled for October 19-20.

Investors shift interest to resort property: CBRE study

Published September 25, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376650

Investors shift interest to resort property: CBRE study

Sep 24. 2019
By THE NATION

130 Viewed

Resort properties have sprung back to popularity, according to CBRE, a leading international property consultant.

Sales performance of resort properties has risen, due to the pent-up demand for projects in the luxury and super-luxury segments, says the firm.

Over the past 2-3 years, developers have been focusing on launching new housing and condominium supply in downtown Bangkok.

CBRE Research reveals that there are now around 30,000 units in downtown Bangkok from condominium projects launched between 2016 and 2018.

One major challenge faced by the housing and condominium markets is that the cost of investment has been increasing along with a hike in land prices, leading to escalating asking prices.

CBRE found that 70 per cent of buyers in the luxury residential market are Thais who have recently made purchases for own-living and long-term investment purposes rather than for short-term investment.

Meanwhile, 40 per cent of purchasers of residential properties priced below Bt10 million are foreigners.

As many residential developers concentrate on building projects within Bangkok, the new supply of resort properties in Pattaya, Hua Hin, Chiang Mai, Khao Yai, and Phuket, especially in the high-end segment, has decreased, leading to a pent-up demand.

CBRE also found that there is a growing demand this year for resort properties in top resort destinations, and buyers in this segment are ready to make purchases for own-use and long-term investment purposes.

Although prices are higher, if projects are on the beachfront or with ocean views; with five-star hotel management; or with attractive rental guarantees, buyer response and sales performance have been positive for luxury and super-luxury projects launched in 2019, the research found. Some good examples include the Residences at Club Med Krabi and the Residences at Sheraton Phuket Grand Bay, which have an average price per square metre of Bt185,000 and Bt230,000, respectively.

“Both projects saw impressive sales performance at around Bt300 million during a three-day event in Bangkok. Their updated sales rates are now 85 per cent and 65 per cent, respectively,” said Prakaipeth Meechoosarn, the director and head of resort property sales for CBRE Thailand.

Veyla Natai Residences, which was launched this year and comprises Bt67-98-million pool villas on Natai beach, Phang Nga, reached a sales performance of 50 per cent in less than a month, even without show units.

MGallery Residences MontAzure Lakeside and Twinpalms Residences MontAzure, with an average of Bt150,000-180,000 per square metre, also saw impressive sales revenue reaching Bt300 million in the first four days of its launch in Bangkok in August 2019, especially for Twinpalms Residences MontAzure which has now reached a sales rate of 80 per cent.

These impressive sales performances prove that demand is still strong for resort properties in prime locations that can generate good returns and have the potential for value appreciation in the future, according to the research. This is backed by a sought-after location and professional property management by leading hotel brands.

Property Perfect convinced it will meet Bt25 bn revenue target this year

Published September 24, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376619

Property Perfect convinced it will meet Bt25 bn revenue target this year

Sep 23. 2019
By The Nation

642 Viewed

Listed property firm Property Perfect Plc is confident it will meet its revenue target of Bt25 billion by the end of this year from the sale of residential projects and other assets, the company’s chief financial officer Sirirat Wongwattana said in a press release on Monday (September 23). 

She added that the firm has reported a total revenue of Bt10 billion in the first half of the year, adding that the remaining Bt15 billion will be made in the second half from the sale of single-detached homes and townhouses worth Bt6 billion, while another Bt6 billion will come from condominium projects in both Bangkok and Japan. The remaining Bt1 billion will come from the sale of land, and Bt2 billion from its hotel and hospitality business, she added.

The company also plans to issue debentures worth Bt2 billion between September 23 and 25 to pay back some of its loans, she said.

Asia-Pacific Housing Forum discusses innovative, sustainable solutions to affordable homes

Published September 24, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376612

Asia-Pacific Housing Forum discusses innovative, sustainable solutions to affordable homes

Sep 23. 2019
By THE NATION

293 Viewed

With the theme “Powering collaboration for housing impact”, industry leaders and a host of others in the sector gathered at the Asia-Pacific Housing Forum in Bangkok last week to find innovative and sustainable solutions to the massive issues confronting millions of low-income families and communities in the climate-vulnerable Asia-Pacific region.

“The reality is housing is far too complex,” Habitat for Humanity CEO Jonathan Reckford said in the opening speech. “Confronted by the housing crisis, we have a collective responsibility to raise awareness that there are solutions and to engage people in many ways. We need to raise the bar and make connections between housing and health, housing and education, housing and livelihoods. Housing is not the only need for families, but a requisite and a foundation that allows a child to stay healthy, get educated, and become self-sufficient over time.”

The Asia-Pacific Housing Forum has served as a platform to amplify why housing matters.

“We need a strong community of organisations and individuals from across the region in order to initiate solutions for the housing shortage in the Asia Pacific,” Hilti Foundation president Egbert Appel said. “Networks represent the power of collaboration.

“Working in networks might be challenging because you have to coordinate organisations, different cultures, different ideas, different objectives and people. In this approach, everyone contributes their own strength, excellence, and competence,” he added.

Ananda Development CEO Chanond Ruangkritya recognised the importance of understanding the link between solving the construction and land equation by having conversations on the use of exponential technology, and using platforms for innovators at the local level.

“When we talk about urban solutions, we look at urbanisation in the next decades when two-thirds of humanity will be living in cities. It is the biggest migration of humanity that we will see in the next 30 years, and most of that will be around Asia. This problem is also the world’s biggest opportunity. We look at how we solve this problem with organisations such as Habitat for Humanity, looking at demand and supply, scarcity of these resources, and see how you turn scarcity into abundance,” Chanond said.

Forum participants discussed key issues around the housing ecosystem – impact investing, market systems, social inclusion, disaster resilience, people-centered innovation and technology – with experts, industry leaders and other stakeholders in the region and around the world.

The four-day forum, held from September 16 to 19, included the Innovation Awards, a training course on Strengthening Land Tenure Security for Disaster Resilience, and two Urban Thinkers Campus events – the Youth Congress and the Urban Housing Practitioners Hub. These are in support of the World Urban Campaign that promotes the New Urban Agenda and United Nations 2030 Sustainable Development Goals.

Organised by global housing non-profit Habitat for Humanity, the forum taps into the extensive network of expertise brought by partners from the private, public and social sectors.

The forum had the strong support of Ananda Development, Hilti Foundation, Aditya Birla Group, HMTX Industries, Cities Alliance, Global Land Tool Network, USG Boral and Ayala Corporation. It had a host of partners including UN-Habitat as a strategic partner, ITC-University of Twente as a knowledge partner and media partners Devex, Asian NGO and Place of Thomson Reuters Foundation.

High-quality homes for sustainable growth

Published September 24, 2019 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

https://www.nationthailand.com/property/30376578

High-quality homes for sustainable growth

Sep 23. 2019
A pedestrian walks past a residential enclave in Huaian, Jiangsu province, on July 28, 2019. (ZHOU CHANGGUO / FOR CHINA DAILY)

A pedestrian walks past a residential enclave in Huaian, Jiangsu province, on July 28, 2019. (ZHOU CHANGGUO / FOR CHINA DAILY)
By China Daily
Asia News Network

150 Viewed

China’s residential property market, which is still considered a key economic indicator, may appear down and out at the moment, but unexpected good tidings are adding to the buoyant mood generated by the celebrations of 70 years of the founding of the People’s Republic of China.

 

Like the economy, China’s residential property industry is transitioning from high growth to high quality. And that is a game-changer with potential long-term implications for the whole economy, experts said.

“China’s property market will shift from extensive and rapid growth to more sustainable growth in the following years,” said Yao Yao, head of research for JLL China, a real estate agency.

Despite factors like many top realty players missing first-half revenue targets, the government’s stringent rules continuing to keep a lid on runaway prices, and financially strained investors turning cautious on new developments, the industry is all excited about the future.

It’s a future that experts said will be marked by innovation. Technological advances, accelerating urbanization and rising environmental awareness among people are expected to lead to smarter and greener buildings everywhere, sparking a new long-term property revolution that would help tide over the current short – and medium-term concerns.

The future of properties will be in line with the central government’s emphasis that homes are for living, not for speculative investments.

“After decades of rapid residential property development, the demand-supply situation has reached a new stage of quality development. We think the central government, property developers and Chinese people are all at a turning point as the function of real estate is being redefined,” said Chen Sheng, president of the China Real Estate Data Academy.

Part of that optimism stems from the Chinese government’s resolve to establish a long-term mechanism for the stability of the hitherto volatile real estate sector. The tendency to treat property as a short-term economic stimulus tool, or as a key source of local government income, or as an avenue for speculative investments is already a thing of the past, said Chen.

“To boost the economy, other tools such as tax reform, regional development, promotion of innovation, and financial opening-up are being used,” said Yao.

Xie Chen, head of research with CBRE China, said, “It is a good opportunity for developers with strong credit credentials to go on an M&A (mergers and acquisitions) spree. It is also a good time to think about diversifying investments.”

Such views started gaining circulation after 12 leading real estate developers, including China Vanke, Country Garden, and Evergrande, reported first-half revenues of over 100 billion yuan (US$14.13 billion) each. But some among the top 10 developers failed to reach their half-year targets.

“Developers need to pay more attention to their financial resilience. Considering that the lending environment is still tight and the debt repayment peak is nearing, developers need to formulate a more selective strategy when making investments,” said Xie.

Big-ticket realty investments may resume on the back of urbanization. In fact, experts expect significant growth in demand for even commercial real estate.

The current scene is enthusing not just industry insiders and external experts but consumers such as Li Shuqi, 41, a Shanghai-based white collar worker at a multinational company. She believes ordinary people have a decent chance now to buy or change homes.

 

Li was born in 1978 when China embarked on reform and opening-up. She is part of the lucky generation that got to witness the rapid development of China’s home market.

In a shantytown in Changning district of Shanghai, Li was raised in a cubbyhole of a home that sheltered not just herself and her parents but her aunt.

“Those days, two homes were separated by a thin shelf. We could hear the neighbors if they spoke a little louder,” Li recalled.

When Li turned 5, her parents moved into a 15-square-meter room in a nongtang (narrow alley). Their kitchen was outside the room. “The room was multi-functional – it was the bedroom at night, living room by day, a shower area and bathroom whenever it had to be,” Li recalled.

In 1988, one of Li’s happiest days arrived when she had her own bedroom and no longer had to clean the wooden toilet anymore – the new house had a flush toilet.

That apartment became Li’s own after the family paid about 20,000 yuan in 1999, a year after the start of housing reform that ended the welfare housing system, creating a free market in its stead.

“The year 1998 was a milestone. Since then, real estate development has seen exponential growth and has become a pillar of the country’s economy, driving economic development and enhancing residents ‘quality of life,” said Yao of JLL China.

“Market forces in the housing sector were a significant breakthrough and built the foundation for the fast-growing market in the coming decades,” said Robert McKellar, executive chairman of Savills Asia-Pacific, a global real estate consultancy.

Agreed Li. “Over the past decade or so, my friends and relatives have been able to buy their dream homes one after another. My cousin who slept on a sofa at night for more than 20 years, finally got to move into a three-bedroom apartment in downtown Shanghai in 2009, and some even own more than one flat as they got married and have children.”

After two decades of development, the average living space almost tripled from 9.7 sq m per capita in 1998 to 36.7 sq m last year, said Lu Wenxi, a researcher with Centaline Shanghai, a property consultancy. The corresponding figure was 3.8 sq m in 1950 and 4.5 sq m in 1978.

Vincent Lo, chairman of Shui On Group, said even as Chinese households benefited greatly from the housing market reform, many large-scale developers emerged. “The number of developers with total turnover of above 100 billion yuan reached 30 in 2018,” said Lo during the Urban Land Institute Asia-Pacific Summit in Shanghai earlier this year.

Chen Sheng of the CREDA said that alongside improved living conditions, many Chinese developers and construction companies are growing amid global competitiveness, thanks to unprecedented urbanization.

Yang Yuechen, head of research and consultancy in Shanghai and Beijing with Knight Frank, a real estate consultancy, agreed that the real estate sector had made great contribution to efforts to improve Chinese people’s living standards and toward economic development.

“However, with prices stabilizing, the sector maturing, and demand softening, the property market may gradually cease to be a key pillar of the Chinese economy in the next one or two decades,” said Yang.

 

Some experts said the change in status has already happened. “The year 2016 was another important milestone as the central government embarked on a major shift in housing policy to ‘focus on both the rental and sales housing markets’.The government’s goal to build a long-term mechanism means it will promote a more sustainable development in real estate in the future,” said Yao of JLL.

Agreed McKellar with Savills. “The market has been witnessing another significant change in recent years as economical housing developments, including multifamily apartments and affordable housing, are increasingly encouraged by the government. This is addressing the affordability issues that have been causing concern to lower-income families and migrants.”

Li concurs with that view. “To be honest, a couple of years ago, I felt anxious to see home prices soaring so rapidly that I felt people like me may not be able to afford homes through hard-earned incomes.”

She said she had dissuaded her parents from buying a new home for several years as she thought their existing flat was “good enough”. But, she changed her mind after realizing the quality of life would decrease with a large sum of mortgage.

“Home ownership is one of the key milestones for many families in China, providing a sense of security and stability as well as serving as a store of wealth. Inefficient allocations of these resources and rising home prices are undesirable as such factors could limit the ability of many families to own a home, which could have socio-economic implications for the community,” said McKellar of Savills.

Experts said government policy will likely ensure residential property prices plateau instead of becoming volatile again. So, homebuyers should buy within their means and not overstretch themselves. Mortgage payments should not exceed between 40 percent and 50 percent of household incomes, suggested McKellar.

“Homebuyers should be more cautious in making their decisions. They should first make a detailed plan for future 10 years or so, and choose their home accordingly,” said Yang.

Given the domestic and external environments, home price rises in China will be well contained for the rest of this year and in the foreseeable future, while first – and second-tier cities, as well as other lower-tier cities, might continue to witness diverging market trends, said experts.

Rental apartments will continue to grow and become a new lifestyle for young people. “We anticipate a long-term mechanism such as property tax to be gradually in place. In addition, a more diversified financing system is expected to take shape with vehicles like REITs (real estate investment trusts), to further increase the proportion of direct financing in the real estate industry,” said Xie.

He said foreign capital has been very active in investments in prime commercial real estate in major first-and second-tier cities this year. CBRE’s 2019 Investors Intention Survey shows that China has become the top destination for cross-border real estate investment, and Shanghai tops the city-wise list.

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