Home » Business » Real Estate
Shifting from residential to commercial complex
By Nie Xin |
April 24, 2012, Tuesday
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Print Edition
Print Edition
THE Chinese real estate market is in a huge transformation period. As the central government has tightened purchasing and other policies to bring down housing prices, some developers, especially small and medium, have started to shift from investing in traditional residential property to commercial complexes.
A commercial property complex can include hotels, shops, offices, service apartments, residences, restaurants and entertainment venues.
"According to a popular Chinese says, 'One shop can feed three generations,' which shows how important commercial land is to the Chinese people. And some developers are starting to focus on the property they own," says Daisy Shen, manager of Commercial Asset Management at the Shanghai Industrial Urban Development Group.
This transformation is essential in a developing country, Shen says. When developers focus on residential projects, the main source of revenue is sales volume. Changes in regulation will definitely push investors to shift their attention to other fields.
In today's real estate market, multi-faceted investment is quickly emerging. The concept of HOPSCA (Hotel, Office, Park, Shopping, Club and Apartment), also known as an urban complex, is one of the trends.
Kerry Parkside in Huamu in the Pudong New Area is a success in this area, integrating a retail mall, grade-A offices, a lifestyle business hotel and serviced residences.
"If you visit Kerry Paradise, you will find every part is integrated fluently, from hotel, shopping mall to the office tower. They are not isolated," says Liu Gongwei, general manager of Shanghai Pudong Kerry City Properties.
Kerry City Properties is well known for their advantages and experiences in exploring office buildings and hotels. Now they are inaugurating a new field - the retail mall. The concept and investment have shifted from a single project to a complex.
Kerry Parkside Shops has 45,000 square meters of retail and leisure space, out of a fully integrated development of 330,000 square meters. The shopping center offers well over a hundred shops all working together to become the newest and one of the most desirable community hub.
The 43-floor, 92,000-square-meter office tower features spectacular views of Century Park. Flowing seamlessly within the new Kerry Parkside complex, integrating the hotel with an office tower, service residences and lifestyle retail mall, Kerry Hotel Pudong opened in February 2011. By the end of last year, turnover has been among the top three in Pudong, according to Qian Siwei, general manager of operations.
"A good urban complex is not a simple superposition of architectures, but a complex of functions," Liu adds.
"In Shanghai, the urban complexes like that also include the IFC in Lujiazui and Grand Gateway in Xujiahui. The HOPSCA can drive the development of an area by building a new commercial circle and also becoming a landmark of a city," Shen says.
Speaking of new trends in Shanghai real estate investment, Shen says grade-A offices will be an important part. The requirements for offices will be expanded as Shanghai is becoming an international financial and shipping center. Areas like Pudong's Lujiazui area and the North Bund will be magnets for explorers and investors.
"The opening of more and more high-end shopping malls will also provide good opportunities for retails of international brands," Shen adds.
A commercial property complex can include hotels, shops, offices, service apartments, residences, restaurants and entertainment venues.
"According to a popular Chinese says, 'One shop can feed three generations,' which shows how important commercial land is to the Chinese people. And some developers are starting to focus on the property they own," says Daisy Shen, manager of Commercial Asset Management at the Shanghai Industrial Urban Development Group.
This transformation is essential in a developing country, Shen says. When developers focus on residential projects, the main source of revenue is sales volume. Changes in regulation will definitely push investors to shift their attention to other fields.
In today's real estate market, multi-faceted investment is quickly emerging. The concept of HOPSCA (Hotel, Office, Park, Shopping, Club and Apartment), also known as an urban complex, is one of the trends.
Kerry Parkside in Huamu in the Pudong New Area is a success in this area, integrating a retail mall, grade-A offices, a lifestyle business hotel and serviced residences.
"If you visit Kerry Paradise, you will find every part is integrated fluently, from hotel, shopping mall to the office tower. They are not isolated," says Liu Gongwei, general manager of Shanghai Pudong Kerry City Properties.
Kerry City Properties is well known for their advantages and experiences in exploring office buildings and hotels. Now they are inaugurating a new field - the retail mall. The concept and investment have shifted from a single project to a complex.
Kerry Parkside Shops has 45,000 square meters of retail and leisure space, out of a fully integrated development of 330,000 square meters. The shopping center offers well over a hundred shops all working together to become the newest and one of the most desirable community hub.
The 43-floor, 92,000-square-meter office tower features spectacular views of Century Park. Flowing seamlessly within the new Kerry Parkside complex, integrating the hotel with an office tower, service residences and lifestyle retail mall, Kerry Hotel Pudong opened in February 2011. By the end of last year, turnover has been among the top three in Pudong, according to Qian Siwei, general manager of operations.
"A good urban complex is not a simple superposition of architectures, but a complex of functions," Liu adds.
"In Shanghai, the urban complexes like that also include the IFC in Lujiazui and Grand Gateway in Xujiahui. The HOPSCA can drive the development of an area by building a new commercial circle and also becoming a landmark of a city," Shen says.
Speaking of new trends in Shanghai real estate investment, Shen says grade-A offices will be an important part. The requirements for offices will be expanded as Shanghai is becoming an international financial and shipping center. Areas like Pudong's Lujiazui area and the North Bund will be magnets for explorers and investors.
"The opening of more and more high-end shopping malls will also provide good opportunities for retails of international brands," Shen adds.
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