China’s real estate sector is a major driver of its economy and contributes a large portion of China’s GDP. This sector, which is booming, has experienced steady growth over the years thanks to market opening and government stimulation. China’s total real estate market revenue was almost 16 trillion yuan in 2019, which accounted for close to 10% of the country’s GDP. China is a large country with extensive urbanization. The real estate market in China is very different from the one found in America and Canada.
This article shares our knowledge and insight into the future trends in China’s booming real-estate.
Real Estate in China: A Very Lucrative Market
China’s real estate market ranks among the top ten largest in 2020. It has nearly 1000’s of developers and generates revenue from real estate sales which have increased tenfold since 2005. China’s real estate market has been a topic of discussion for some time. In 2008, the average property sale price per square meter in China rose from 3.8 thousand per square meter to nine thousand yuan per square meter. This was even though housing prices have doubled in the past decade. Different regions have experienced different price growth trends. In China, Beijing was the most expensive region for real estate sales in 2019, closely followed by Shanghai.
Covid-19’s impact on China’s real-estate market
It is important to look at some historical patterns to understand the impact of COVID-19 during the Covid-19 pandemic on China’s real estate market. Sales are generally slow at the beginning of the year due to the Chinese Spring Festival, which occurs in January. Sales volume for January and February are often equal to the monthly average volume throughout the year. China’s real estate market was severely affected by the lockdown and subsequent months. However, companies that had been shut down were able to resume business and saw a slight increase in house prices in major cities.
The National Bureau of Statistics of China released official data showing that China’s realty investments increased by 5.6% annually in the first nine months of 2020, with a rise in residential property investments. China’s growth accelerated slowly after the Covid-19 pandemic and soared to 38.3% in February 2021.
Beijing has been driving recent changes in China’s real-estate market. The central government has been cautious about this sector in recent years out of concern that it might overheat. Instead, the state has focused its efforts on other areas of economic growth while waiting for the macro economy’s recovery before turning its attention to this sector. It will improve quickly and there won’t be any need for targeted stimulus.
Digital Tool for Success in China’s Real Estate Industry
Reputation is a key component of any brand. It’s obvious that a brand’s reputation has a huge impact on sales all over the globe. This is especially true in China, where everyone is connected online. Your online reputation is a result of your online presence. Investors aren’t just interested in your property, but also your company’s reputation. You need to establish a strong brand identity and be visible on the right platforms to get the most sales.
Reach out to China Real Estate Investors for Leads/Prospect Generation
China boasts an impressive 65% internet penetration rate, with more than 940 million Chinese connected online. China has approximately 350 million people who are ‘middle-upper and active online daily. You need a digital strategy to generate qualified investment opportunities from the highest wealth bracket (for instance, the upper 25,000,000).
Why? Because the Chinese Market is unique and developed under its conditions. With the rise of digital technology worldwide, wealth has been accumulated in China. Online research was more prominent in investors’ minds than traditional, commission-focused sales networks of agents.
Different approaches to the Chinese Real Estate Market
China is the country where digital is the best way to generate leads. This is because China is one of the most online-centric countries on the planet. Investment is no exception. The culture of online research is strong in China, with an average user spending 1.5 hours per day searching for information.