Property developers turn to smaller cities for higher returns in China

10:36, April 13, 2010      

Email | Print | Subscribe | Comments | Forum 

A survey showed an increasing number of property developers turn to China's second-tier and third-tier cities for higher returns as land supply in big cities is about to reach its limit.

The survey was conducted by Syswinland Consulting, a Beijing-based firm specializing in land development and investment, the China Daily reported Tuesday.

It has been increasingly difficult for land developers to launch new projects in big cities such as Beijing and Shanghai, while there is greater potential in smaller cities because their land supply remains abundant, said the newspaper.

Hohhot, the capital city of Inner Mongolia Autonomous Region is one of those rising cities. It serves as the trade link between China and the Republic of Mongolia and Russia.

The city has a rich supply of land for future development, the newspaper cited Gao Zhiguo, a senior researcher with Syswinland, as saying.

Some developers have already moved their projects to smaller cities to seize this opportunity.

Evergrande Real Estate Group reportedly has development projects in 27 second- and third-tier cities, and reaped 90 percent of its sales from those cities in the first quarter of 2010.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion