Developers expand in lower tier cities and internationally
Despite the general economic slowdown, rising land costs and government regulations, the property market continued to grow, in part because of the China’s rapid urbanization.
Residential sales rebounded in 2013, after a year of fluctuation. Commercial growth continued, although with concern about retail development because of the impact of e-commerce. With land costs high, competition heated, and prices softening in the Tier 1 cities, some of the leading real estate developers, like China Overseas Property, accelerated expansion to lower tier markets.
The largest companies also looked overseas for growth. Greenland Holdings invested in New York City and Los Angeles projects. Vanke partnered with a US developer to build a luxury apartment building in San Francisco.