To promote project sales, Chinese real estate developers hire well-reputed global real estate service providers to advise them.
San Francisco, CA (PRWEB) September 16, 2012
Over the five years through 2012, revenue for the Realty Management industry in China has been increasing 15.2% per year to reach $64.1 billion. In the latter half of the period, rising inflation and increased speculation activities led to new government policies to curb housing prices. As a result, fewer houses were built and growth in demand for the Realty Management industry for in China slowed, says IBISWorld. Offsetting this lower growth in the commercial real estate sector, however, has been the Chinese government’s construction of over 10 million indemnificatory houses (i.e. non-commercial residential housing) for medium- and low- income families.
This industry's concentration level is very low due to the large number of small firms, low barriers to entry and geographical limitations to expansion. Except for leading global real estate services providers, such as CB Richard Ellis Group, Jones Lang LaSalle, and Savills, major companies in this industry are subsidiaries of real estate enterprises. Five of the top ten companies in the Realty Management industry in China are global real estate services providers. IBISWorld anticipates that industry concentration will increase with the introduction of a public bidding system for choosing realty management enterprises, along with the operating scale expansion of major companies, and mergers and acquisitions among these enterprises. The foreign presence in the industry is also expected to increase in line with the need for high-end realty management services. To promote project sales, many real estate developers often recruit well-reputed global real estate service providers to advise them.
A growing population, increasing urbanization and per capita floorage, and the construction of indemnificatory houses will boost demand for residential and other realty services in cities and towns in the next few years, says IBISWorld. In addition, the government is expected to increase the regulatory requirements for the Realty Management industry, which will create a favorable environment for its long-term development.
For more information, visit IBISWorld’s Realty Management industry in China report page.
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IBISWorld industry Report Key Topics
The Realty Management industry in China provides real estate and property management services such as professional realty maintenance, public security, environmental management, and other relevant services according to specified contract conditions.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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