Chinese Storage Property Get into the Best Investment Opportunity
The steady decline of manufacture industry has lead to the decreasing demands of warehouses year after year in Shanghai, even the industrial land has the trend of transition for invigoration. However, it does not mean that the overall industrial real estate has lost demands and investment value. According to the survey carried out by Urban Land Institute and Price Waterhouse Coopers, the logistic facility has come out among the development & investment opportunities of entire Asia-Pacific region in 2015. Therefore, as a significant part of industrial estate, the rise of Chinese storage property has made the industrial estate get the best prospect in the investment field of China real estate.
The electronic commerce lead the reform of warehousing and logistic.
Due to the long-term implementation of limited purchase & loan, the investing market of China real estate and residence has appeared to be weakness. However, China is still the first choice for the investors to invest the industrial estate. The prosperous situation of China real estate has partially resulted from the rapid development of China electronic commerce. Mr. Si, Tuyi, inspector general of China Industrial Estate Department of Jones Lang LaSalle, said “we noticed that the sustainable development of urbanization and double-digit growth of retail volume have promoted the market’s demand for high-quality storage room as well as provide the support to the increasing strong retail trade and electronic commerce.
In the past, Chinese warehouse facility pays more attention to export market. However, with the domestic prosperous economy, the demand for modern logistic center is continuously increasing so as to support the development of domestic market. The retail trade has much demand for high-quality distribution centers with good location, which highlights the long-term lack of Chinese warehouse stock.
Sine the Gov’t approved a free trade area in Tianjin Free Trade Zone, Haiwei Plaza, which was constructed by Haiwei Liquor Trading Market and located in Xingang road of Tinajin bonded zone, has served plenty of visitors in batches. Haiwei Plaza with an area of 24,000 squire meters is the largest temperature controlled storage base in China. It is also a modern and high intelligent comprehensive building which combines the functions of warehouse and office. The project’s completion will play a significant role in constructing free trade zone and satisfying the demands of industrial estate’s warehouse & distribution. Since Tianjin free trade zone was approved, the industrial estate projects and current warehouse distribution volume still can not satisfy all the enterprises possessing the bonded demands
Supply and demand relation determines the increasing attraction.
The majority of domestic storage facility is the same obsolete as those in Tinajin free trade zone (Tianjin bonded zone), which could not satisfy the requirements of modern enterprises. CAWS estimated that there was about 700 million squire meters of storage space in China. However, Jones Lang LaSalle predicted that there was only about 40 million to 50 million squire meters of new storage facility stock in China. Although the demand for modern storage property is continuously increasing, the domestic government trends to limit the land provided to real estate developers. The most important reason is that the other land application will get more benefit from job creation, tax increases and other aspects.
Mr. Si, Tuyi considered that keeping the storage space in a long-term low stage would be beneficial for the investors or developers. In the long run, because of the unbalanced supply & demand relation, the attraction of real estate will be continuously increasing. Therefore, there will be good investment opportunities in 2015.
