By Myssie You
More than 70 mainland property developers are expected to rack up over 10 billion yuan (US$1.63 billion) in contracted sales by the end of this year, up from 52 last year, according to the China Index Academy, a research unit under property information provider Soufun.com.
The academy said Thursday that some property giants such as China Vanke Co. Ltd. (000002.CN) and Poly Real Estate Group Co. Ltd. (600048.CN) have already amassed 10 times that amount this year, and more developers are set to join the elite 100 billion yuan sales club than in 2012.
Total demand for new homes will reach 16 billion square meters by 2020, with about 31 percent of that interest coming from first-home buyers and 31 percent from families looking to upgrade their homes, the academy said. The rest of the demand will be from urban residents forced to relocate due to urban overhauls. The projected supply of new homes will basically meet the overall demand by that time.
Academy executive director Huang Yu said that while residential prices had remained strong despite government curbs, there could be bubbles in some third- and fourth-tier cities where there is an oversupply of land.
Huang pointed to good prospects in the non-residential sector.
“Industrial real estate, including commercial projects, retirement communities and tourism ventures, among others, will be become a regional economic growth engine by creating jobs, attracting more people and thereby generating demand,” she said.
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