April 1, 2009—Forty Tier II and III cities in China will be on the radar of property occupiers, investors, and developers over the next decade, according to Jones Lang LaSalle’s latest research report, “China40—The Rising Urban Stars.” The report also identified which of the 40 cities will have the potential to emerge as real estate winners in the office, logistics, and retail sectors.
“By 2020, we estimate that Tier I cities would account for only 10% of China’s commercial real estate activity, which serves to highlight the massive opportunities in Tier II and Tier III cities over the coming decade,” says Mr Fung Kin Keung, Managing Director, Jones Lang LaSalle Greater China.
Produced as a follow up to the company’s 2007 China30 research, the latest report provides strategic context for real estate players who are prepared to look beyond China’s Tier I cities. The evaluation process started with 275 cities across China, narrowing down the selection through analysis of a range of demographic, economic, business, infrastructure, technological, and labor market factors, then by economic and real estate indicators, then with the input of market practitioners.
According to Jones Lang LaSalle, key factors driving and shaping China’s cities and real estate markets are government policies combined with the up-skilling of China’s labor force and continued infrastructure investment. The report provides an in-depth assessment on how these three factors will stimulate future growth.
In addition, the report assessed how China’s structural changes would impact specific commercial real estate areas, and identified the likely real estate winners for the main property sectors. The report also addresses the impact of the recent Economic Stimulus Package and the Rural Land Reform on the China 40.
