A number of relatively unknown Chinese cities are set for a property boom as the country’s real estate recovery gets underway, according to analysts.
They name cities in the western, central and northern regions such as Tianjin and Chongqing as being in a position to grow faster than cities like Shanghai and Beijing.
Tianjin, a port in north eastern China about 120 kilometres from Beijing is poised to be the centre for the revitalisation of the region’s industrial base with growth of 16.5% predicted.
Analysts at property consultants Jones Lang LaSalle have tipped it to become the fifth most important municipality after Beijing, Shanghai, Guangzhou and Shenzhen.
A number of major Western firms already have a major presence in the city including Airbus and Boeing.
Dalian, another northern port city, is likely to see strong demand for residential property due to increasing employment. It has some major call centres serving Japan and Korea and a large amount of IT firms as well as offices for international bank Morgan Stanley.
Chengdu, the capital of Sichuan province, is perhaps better known on the international stage for its pandas than its property, is also tipped for growth. It has strong potential for international tourism as it is well connected to the rest of western China through network of roads and rail but has also been named by the Chinese government as a key centre for the development of China’s western region. International firms with operations in the city include IBM and Nokia.
Chongqing, China’s most populous city is where Hong Kong developers have bases. It also has lower property prices than most big Chinese cities so offers real estate investors potentially higher returns.
Shanghai may be China’s wealthiest city and main financial hub but nearby Nanjing has seen property prices soar in recent years and according to CB Richard Ellis it offers opportunities for office and retail development because of a limited supply of Grade A office and prime retail space.
CBRE has described Wuhan, one of China’s main steel producing areas and the capital of Hubei province, the scientific and education centre of central China, as ‘the most important transportation hub in inland China’ because of its strategic location and hence a good spot for investments in factories and warehouses.
Hangzhou, a popular tourist destination about 200 kilometres from Shanghai, is already one of China’s richest cities and is tipped because it is an important manufacturing base and logistics hub for China’s eastern seaboard.
Electronics and its position across a narrow strait of water from Taiwan, makes Xiamen, the port city in southeastern China one of China’s important manufacturing bases in the southern region. Major foreign companies with large operations in the city include Dell, Panasonic and ABB.
