What Is China'S Retail Real Estate Rush?

The concept of retail real estate "surfaced"

The progress of urbanization in China must be the core of economic development in the next 20 years.

China's retail market is attracting more and more attention from the international market.

The Chinese like the life of urbanization.

Retail real estate refers to the real estate and property forms used for retail and service businesses. It has the characteristics of unified planning and management, and the main forms are shopping centers, commercial blocks, professional theme stores, etc.

There are three core factors that determine the value of retail real estate, one is the level of economic development, the second is the growth of population and the flow of third funds. As China continues to accelerate the process of urbanization, the continuous flow of talents into developing cities and loose monetary policy will surely bring a rapid development to China's retail real estate, including commercial real estate, in the coming 5~10 years.

This reporter clearly put forward the concept of "retail real estate", China. Shopping Mall Guo Zengli, director of the industry information center, expressed high recognition and appreciation. He believes that China's current commercial real estate expression is too general, because commercial real estate covers a variety of different forms of property, it is easy for developers to form erroneous guidance, such as shopping center as the representative of the "retail real estate", which is reflected in the retail brand through the way of leasing operation, so it is necessary to implement complex business management and property management, including marketing; and office building is the company's office property form, more emphasis on property management, which is a lot of commercial real estate developers only emphasize property management and ignore business management is an important reason.

Xu Youwei, chief representative of the International Shopping Center Association, said: "in the past, commercial real estate" and "retail real estate" were always confused. Now, Chinese developers are becoming more and more professional, and their concepts are becoming clearer.

At present, the biggest problem facing shopping centers is Attract investment Difficulties. Xu Youwei believes that at present, many international brands attach great importance to the Chinese market, such as clothing and electrical appliances brand, and so on. They are all looking forward to entering the shopping mall in China.

When it comes to investment promotion, Guo Zengli believes that China's local retail brands, especially clothing, must quickly understand the development characteristics of shopping centers, gradually improve channel strategies, actively explore the shopping center access, and gradually change the situation that domestic shopping center tenants are almost monopolized by international clothing brands.

Chairman of Hong Kong Real Estate Development Co., Ltd. Wang Yu Qiang It points out: "the development of Chinese shopping centers in recent years is obviously faster than that of China's department stores. There are still 800 million farmers in China. If we want China to become a developed country in the world, 200 million farmers will be enough, and 600 million farmers will have to transfer from rural areas to cities. The urban population from the first line to the three line will have a huge increase, so the development of the retail real estate industry is very important.

Cheng Xiaoyuan, senior managing director of CITIC Capital Holdings Limited and director of real estate investment, said: "in fact, China's domestic demand accounts for far behind the BRICs of the whole GDP, with the highest 70% in BRICs and 50% in the lowest. China needs to increase from 37% to 50%, which accounts for GDP of domestic demand. Therefore, the development space of China's retail real estate is quite large.

Retail real estate ushered in "second spring"

The United States has 300 million urban population, but there are 49 thousand shopping centers, while China has 200 million urban population, but there are less than 2000 shopping centers.

The entry of "insurance funds" will strongly boost the rapid development of China's retail real estate. 4 trillion of the total assets of insurance companies, 10% can be invested in commercial real estate.

The shopping center will develop in a large or specific direction, especially the development of the two or three line regional shopping center.

In the middle and later stage of economic development, along with the continuous improvement of residents' housing proportion and the continuous maturity of the residential environment and the continuous improvement of the business environment, the pulling of investment is continuously turning into consumption demand, which will usher in the second round of commercial real estate appreciation. From a long-term perspective, the advantages of China's commercial real estate, including the long-term value-added of retail real estate, should be very obvious and very clear.

Gao Liang, executive deputy general manager, said: "shopping centers can integrate retail, catering, entertainment, fitness and other consumption together, which will be more optimistic than traditional department stores. In addition, from the scale and capacity of the market, the development of China's market has very good prospects. For example, the United States has 300 million of the urban population, but it has 49 thousand shopping centers, while China has 200 million of the urban population, in fact, the number of shopping centers is less than 2000, so the future development space is relatively large, and the demand for consumption has a very large role in promoting the expansion of the market scale. {page_break}

As we all know, the real estate trust fund can integrate property agencies, provide developers with quick return funds, and provide a very good capital tool for the real estate industry. The real estate trust fund is ready to come out in China. It will play an essential role in the expansion of retail real estate, including commercial real estate in the future. It's hard for us to think of this huge market. For example, in the United States, the market value of the real estate trust fund is around 150 billion dollars. About $17 billion for real estate development. Now China's trust fund is zero, so the space for future development is unthinkable. Such a market scale, such a creative capital, will play a positive role in promoting the capital value, including the rapid and standardized development of the industry.

At the same time, the entry of "insurance capital" will give a very fast impetus to retail real estate, including commercial real estate. The specific management methods of insurance investment real estate have been promulgated. 4 trillion of the total assets of insurance companies, 10% of them can be used as investment in commercial real estate assets, 10% of which is equivalent to 400 billion, which is equivalent to the total market value of Chinese property, so the proportion is very large, and this part of the money is not allowed to invest in residential project development. At the same time, this is a better opportunity for the commercial property that has entered the mature and stable period. Therefore, the prospect of retail real estate should be very good in the near future, in the medium term and in the long term. However, with the good prospects for economic development, good market demand and abundant funds, we need to study how to provide a professional management team for this fast-growing market and enhance professional management capability. This is an urgent problem. "

"At present, we have reached a consensus that in the first tier cities and some major central cities, the development of shopping centers will develop in a large scale or in a specific direction, but the development of shopping centers in the two or three line area will be very rapid." Yuen Lai, vice president of CITIC Real estate, pointed out: "as a real estate industry, it is in a special period, that is, the state's macroeconomic regulation and control of real estate. From our own sales data, residential sales have been greatly affected, which is related to the Zero selling industry in the economic cycle. A huge change has taken place in the real estate industry, that is, our commercial real estate is attached to residential real estate, or the escort of residential real estate has passed. For a long time, commercial real estate will occupy a very important position, or even a dominant position, or an independent position.

Commercial real estate, we define it as retail real estate, will cause more and more influence in the real estate industry. Unfortunately, most residential real estate companies are not doing so well in doing commercial real estate now. I still insist on a point of view: we are doing retail real estate in China, and the market will be bigger and bigger in the future. Retail real estate is becoming more and more important as an industry. However, there will be 1/2 phenomenon: the shopping center needs to be built up, it can not be built up by 1/2, and 1/2 can not be opened up, and 1/2 is not well operated. This law is caused by special phenomena in China. This phenomenon provides a good opportunity for the capital market, and the capital market will rectify this phenomenon. From the retail real estate market, China's retail real estate will be very huge, but the prospect is not optimistic. This situation provides us with some opportunities, especially the powerful organizations in China, which provide some opportunities. At the same time, I predict that there will be a larger reshuffle of retail and commercial real estate in the future. This shuffle will also lead to changes in the structure of the entire real estate industry.

Zhao Yongqiang, chairman of Tiancheng enterprise group, said: "the Chinese do shopping centers, one is not afraid of no money, two is not afraid of nowhere. The Chinese have their own consumption habits, and the largest consumers of Chinese shopping centers are middle class. In our value system, how many people are buying LV in China? We can see it and we can figure it out. But as H&M, ZARA and other SPA brands, I think this is the focus of China's future retail development. Because LV brands are very sophisticated and narrow, if they want to be bigger or rely on 6~8 billion wage earners.

I now describe our real estate team as a warlord. While studying, we should integrate into the local area, understand the local situation and understand the local consumption ability and level. Shopping centers are not built up. Shopping centers are built up and used to make people feel that after 30 years of reform and opening up, our living standard is improving and sharing the fruits of our reform and opening up.

Secondly, we should attach importance to Chinese culture, because when we are doing it, it is easy to worship foreigners, foreigners are all right, we are all wrong. In fact, there are many cultural factors in China that can be implanted into shopping centers. I think it is necessary to form Chinese cultural elements in learning, understand the Chinese market, and establish 2~3 shopping centers for our Chinese people, that is the real world, China's shopping center.