Upscale real estate to remain hot property in Beijing

Upscale real estate to remain hot property in Beijing
10/10/2018 , by , in INTERNATIONAL

High-end property market in Beijing will see a continual price rise due to growing demand, industrial experts said.

“Even under the policy restriction, high-end residential price in Beijing will still witness an increase in the long run due to stable demand,” said Jane Deng, head of Residential Services in CBRE Northern China.

Residential demand is closely related to job opportunities, according to Virginia Huang, managing director of Advisory and Transaction Services in CBRE Greater China. The demand for commercial real estate is growing in cities with bigger job opportunities, which further drives residential price to go up, she said.

Under the context of urban renewal, Beijing, a central city with strong economy, complete infrastructure facilities and consistent job market strength in the nation, will continue to drive high-end residential demand in the city and its surrounding area in the long run, she said.

In the past year, Beijing’s first-hand residential price has seen a 17.8 percent decline while second-hand residential price has seen a 34.8 percent surge, according to statistics from Cushman & Wakefield.

Second-hand residential transactions account for nearly 80 percent of overall transactions in Beijing’s residential market, according to Wei Dong, head of Research Department in Cushman & Wakefield Northern China. Therefore, the trading market is still witnessing a substantial increase of price, she said.Some of the major property developers in China are still optimistic about the prospect of the first-hand residential market in Beijing.

“In order to meet the growing demand, we plan to invest 5 billion yuan ($728 million) in the next five years in fostering unicorn enterprises in the fields of health and intelligent technology, aiming to build an industrial environment that facilitates the company’s future development,” said Li Congrui, CEO of China Jinmao.

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