"2020 was a challenging year for the public and the economy, 2021 has been a challenging year for the property market, what will 2022 hold? Savills has published its 2022 China market outlook report, exploring the opportunities shaping the future of China’s real estate market."
"Savills China, in collaboration with APREA, SOM and IWBI, has published its second edition of its annual flagship report Horizons, that looks at the importance of bringing together all stakeholders to collaborate on sustainability goals."
"The GBA Grade A office market appeared to be on its way to recovery in 1H/2021. Many market players were increasingly confident with rental decreases slowing (down just 1.6% half-onhalf(HoH)), and prices once again rising (up 0.2% HoH)."
"Starting in 2018, Hainan began its journey to become a free trade port and a key gateway to the Pacific and Indian Oceans. The island province’s unique location, taxation and system advantages will bring unprecedented development opportunities for Hainan. According to the 14th Five Year Plan, Hainan will target annual economic growth of over 10% per annum and an urbanisation rate of over 65% by 2025. Haikou and Sanya will be the key drivers of growth, accounting for 60% of the province’s population and 70% of its GDP."
"Tourism, one of Hainan's twelve key industries, is the third-largest tertiarysector industry after real estate and education, accounting for 7.3% of Hainan's GDP in 2020. The strategic positioning of Hainan as an international tourism and consumption centre means tourism retail and tourist consumption will remain a focus of policymaking and industry development. Hainan has accounted for a growing share of duty-free sales in China since 2011. The nearly absent international travel in 2020 and the subsequent impact on duty-free sales at airports in Beijing and Shanghai means Hainan’s share in duty-free sales could exceed 50%, up from 25% in 2019."
"The property management sector is believed to be approximately 35 billion sq m by the end of 2020, according to CRIC, up from 19.3 billion sq m just five years ago with revenues of RMB1.27 trillion. The biggest 100 property management companies account for roughly 33% of space under management (11.55 bn sq m), having consolidated their market share from 18.1% in 2015. This tremendous growth can be attributed to the country’s rapid urbanisation and continued investment in property development. Meanwhile, a constant stream of new stock, in addition to the consolidation of existing market share, represents significant market opportunities for managers in the near future."
"The historical drivers that catapulted China from the seventh-largest economy in the world in 1999 to the second, in current US dollar terms, in 2019 are close to spent and new drivers of emerging industries, sustainable environment and technology innovation must be found to augment growth in the decades to come. "
"While China’s retail market was heavily impacted by the outbreak of COVID-19 in Q1/2020, the market has steadily recovered. According to eMarketer, retail sales are forecast to reach USD5.2 trillion for the full year 2020, making it the largest consumer market in the world."
"The global luxury market is pinning its hope on a swift recovery of the China retail market, a key driver of growth and one of, if not the, biggest market in the world. As life starts to get back to normal, albeit with some virus prevention measures remaining in place, shopping malls around the country reopened and resumed close to full operations starting in April. Over the five-day May holiday period, landlords and retailers implemented extensive promotional campaigns to stimulate sales. LVMH and L’Oréal have already reported positive year-on-year (YOY) sales growth in China."
"China has witnessed a lending boom ever since the Global Financial Crisis (GFC) in 2008. Companies and the country have become reliant on access to ever-larger amounts of credit for sustained growth. "