Shanghai Emerges as Top Real Estate Location for Chinese Investors
Shanghai remained at the top among locations domestically where the Chinese chose to funnel their investments. Half of the country's investments were done here, according to records, and as Shine pointed out. Other cities, like Beijing, Guangzhou, and Shenzhen, are equally attractive too.
Investments and deals in Shanghai amounted to 110 billion yuan (US$16.3 billion) in 2018. It was cited to have been 56 percent of the total profits of the country. In contrast, that total has fallen to 197.7 billion yuan, 12. 5 percent less from 2017 figures. The current difficulties facing the country-the problems between China and the US included-are to be blamed for the decline, among others.
It could be part of the blame, but the Chinese government's policies are in the best interests of the people. That did not help the economy, however, as it limited any financing that could be diverted towards domestic channels and to investors. The market, however, appears to have adjusted to the conditions set by the policies, as it started to pick up near the end of the year.
An example of how Shanghai remained among the top cities to invest in domestically is Greenland Hong Kong's interest in it. China Knowledge reported that the property developer is diversifying their portfolio. To boost this, it is looking into delving towards elder care services, the focus of which is aimed towards Chinese cities.
The strategy is sound and the reason behind it justified. Greenland Hong Kong is a keen observer of the market, and diving into health care services is a way of creating diversity among the company's portfolio. It's a wise action, considering that the property market is in a poor state these days.
The markets that they are looking into included Shanghai, where they will be establishing a medical institution in partnership with Australian elder care company Provectus Care and the local Shanghai International Medical Center, a hospital specializing in Alzheimer's disease, among other health specialization.
Real estate services provider Savills have said that international investors had more opportunities last year, due to very few domestic investors offering competition. These investors and developers had interests in the different mixed-use projects and sites in the country, as the 'capital reserve' that they possess were a good inclusion in large-scale deals between companies.
In 2018, 6.8 billion yuan worth of properties has been traded in Shanghai, 75 percent of which went straight to conversion, per Savills' analysis.