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Real estate no longer as important in China's national economy: developer

By Yuan Can (People's Daily Online)    15:13, October 23, 2015

(File photo)

Although Wang Jianlin of Wanda snatches back the Number One position from Jack Ma of Alibaba as the wealthiest person in China, the number of those who make a living in real estate is dropping continuously, according to a newly released data by the Hurun Research Institute.

According to the Hurun Property Rich List 2015, the number of individuals on their Hurun Rich List who made their fortunes from real estate has dropped to the lowest point ever, making up 16.1 per cent of the list, down from 19.8 per cent last year and over half in 1999.

The real estate industry in China enjoyed a golden era for over a decade starting from 1999. Although housing price dropped greatly in 2008, it bounced back until 2013 with prices in major cities consistently breaking records.

However, the number of the wealthy in real estate field has experienced a decline, indicating the sector’s pillar position in the national economy has weakened.

The list also demonstrates that the number of the wealthy making a living in manufacturing and information technology industries shows a rapid increase, showing that China is going through a process of economic restructuring. “The real estate industry is not as important as it was 10 years ago within the overall national economy,” said Yu Liang, President of Vanke, the largest residential real estate developer.

“The general slowdown in the economy has driven many real estate developers to diversify into other industries for long term growth. Investing into cinemas and entertainment, Wang Jianlin is a perfect example of this. Wang holds less than 50 per cent assets in real estate now which took up over 95 per cent of his whole assets just five years ago,” said Rupert Hoogewerf, chairman and chief researcher at Hurun Report Inc. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Yuan Can,Bianji)

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