Summary of Prospect of China’s Real Estate Industry in 2017

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Prospect of China’s Real Estate Industry in 2017 summary
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Since the financial crisis of 2008, China’s real estate sector has been growing rapidly with increased investment by the government. In 2016, China’s property sales and prices spiked due to intensified real estate activity. Guandian is a Chinese portal that provides first-hand real estate information and analysis. In this article, Tan Huajie, senior vice president of Vanke, a leading real-estate company in China, predicts that tighter capital conditions and higher land prices along with narrowing profits will bring weaker performance to the sector in 2017. He also discusses the possible future configuration of China’s real estate sector, particularly its housing market. getAbstract recommends his surgical analysis to real estate executives and interested investors.

In this summary, you will learn

  • What China’s real estate sector looks like in 2017,
  • What “low consolidation” means for larger companies in the housing market and
  • How real estate companies will sort themselves into three categories.
 

About the Author

Tan Huajie is a senior vice president and former board secretary of Vanke and is responsible for research and execution of new business and innovative business models. Founded in 1984, Vanke is one of China’s largest and most successful residential real estate developers. Guandian is a Chinese portal that provides first-hand real estate information and analysis.

 

Summary

China’s housing market boomed during 2016, with significant sales and rapid price growth. The likelihood of repeating that success in 2017, however, seems minimal. The year 2016 saw only a minor increase over 2015 in the scale of new property projects, so don’t expect any substantial fluctuations on the same front in 2017. The considerable number of land dealings that occurred in 2016 will boost investment in 2017. But no one can make optimistic predictions about the growth of the real estate sector’s size or earnings. The safest prediction calls for steady sales and a mild rise in prices.

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