• Most Popular
  • Most Shared

FACTBOX: China's up-and-coming cities for property investors

Tue Jul 14, 2009 3:43am EDT

Stocks

   

BEIJING/SINGAPORE (Reuters) - China's efforts to speed up economic development in the western, central and northern regions have helped second-tier cities such as Tianjin and Chongqing grow faster than cities like Shanghai and Beijing.

China  |  Japan

Following is a brief description of the up-and-coming cities most favored by property industry executives:

Tianjin

Population: 11.76 mln; GDP Growth: 16.5 pct

Port city in northeastern China about 120 km from Beijing. Under China's 11th five-year plan, Tianjin -- one of China's four autonomous municipalities* -- will be the center for the revitalization of the northeast once China's industrial base.

Western firms with large operations in the city include Airbus (EAD.PA) and Boeing (BA.N) while Singapore conglomerate Keppel Corp (KPLM.SI) is leading the development of a 30-sq km ecological township in the Binhai area.

Property consultancy Jones Lang LaSalle (JLL) says Tianjin has the greatest potential to become China's fifth Tier-1 municipality after Beijing, Shanghai, Guangzhou and Shenzhen.

Dalian

Population: 6.13 mln; GDP Growth: 16.5 pct

Northern port city with a strong indigenous IT industry. Intel (INTC.O) recently announced the construction of a $2.5 billion chip plant that is expected to employ 1,500 people when completed in 2010. Some people in Dalian speak Japanese and Korean and the city has several call centers serving the two countries.

Foreign investors in Dalian include Taiwanese property and construction group Farglory (5522.TW) and Morgan Stanley

(MS.N).

Chengdu

Population: 12.71 mln; GDP Growth: 12.1 pct

Capital of Sichuan province and well connected to the rest of western China through network of roads and rail. The central government has named Chengdu and Chongqing key centers for the development of China's western region. International firms with operations in the city include IBM (IBM.N) and Nokia

(NOK1V.HE).

Sichuan is home to China's pandas and has strong potential for international tourism.

Chongqing

Population: 28.39 mln; GDP Growth: 14.3 pct

China's most populous city and one of the country's four autonomous municipalities. Property prices in Chongqing are lower than most big Chinese cities, offering investors potentially higher returns behind other cities.

Most Hong Kong developers, including Hutchison Whampoa (0013.HK) and Sino Land Co (0083.HK) have a presence in Chongqing.

Nanjing

Population: 7.59 mln; GDP Growth: 12.1 pct

Provincial capital city of eastern Jiangsu, one of China's richest provinces. It is next to Shanghai, China's wealthiest city and main financial hub. Property prices in the city soared in recent years, driven by rising income and higher prices in Shanghai.

CB Richard Ellis said Nanjing offered opportunities for office and retail development because of the limited supply of Grade A office and prime retail space.

Wuhan

Population: 9.1 mln (2006); GDP Growth: around 15 pct

Capital of Hubei province and scientific and education center of central China. Wuhan is also one of China's main steel-producing areas. CBRE describes Wuhan as "the most important transportation hub in inland China" because of its strategic location and hence a good spot for investments in factories and warehouses.

Hangzhou

Population: 7.97 mln GDP Growth: 11 pct

Hangzhou, a popular tourist destination about 200 kilometers from Shanghai, is already one of China's richest cities with a per capita income comparable to Tier-1 cities of Beijing, Shanghai, Guangzhou and Shenzhen. The city is an important manufacturing base and logistics hub for China's eastern seaboard.

Xiamen

Population: 2.49 mln GDP Growth: 11.1 pct

Port city in southeastern China that is right across the narrow strait of water separating Taiwan from China. It is one of China's important manufacturing bases in the southern region, mainly for electronics products. Major foreign companies with large operations in the city include Dell (DELL.O), Panasonic (6752.T) and ABB.

* China's four autonomous municipalities are Beijing, Shanghai, Tianjin and Chongqing

Sources: local government websites, Jones Lang LaSalle, CB Richard Ellis, Reuters

Figures are for end-2008 unless otherwise stated

(Reporting by Langi Chiang and Kevin Lim; Editing by Valerie Lee)



More from Reuters

Photo

Obama reaches climate deal with emerging powers

COPENHAGEN (Reuters) - President Barack Obama forged a climate pact with major developing nations including China on Friday but European nations only reluctantly signed up for a deal they criticized as unambitious. | Video

A woman shops at a Sam's Club store, a division of Wal-Mart Stores, in Bentonville, Arkansas June 4, 2009. REUTERS/Jessica Rinaldi

The food-stamp economy

On the last day of every month, shoppers at Walmart load their carts with food and household items and wait for the midnight hour. Is this the new normal in America?  Full Article 

Two men shake hands in a file photo.    REUTERS/File

Let's make a deal

The battered M&A sector will make a tepid recovery in the coming year and three hot sectors will lead the way, according to a Thomson Reuters analysis.  Full Article