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Real estate sector at crossroads

By Hu Haiyan | China Daily | Updated: 2013-06-05 05:54

Despite the challenges, many real estate developers say they expect more growth, particularly when the urbanization drive is intensified.

Wang Jianlin, chairman and founder of Dalian Wanda Group, said property prices will grow moderately over the next 10 years.

"As China's urbanization continues, there will be strong demand in the domestic real estate market over the next 10 years. A big drop in prices is unlikely. In fact, property prices will continue to rise, but growth will be limited because even stricter government policies are likely to be implemented," Wang said.

Han said that Poly Group regards the industry as critical to its development and is confident about its future.

"No doubt there will be turbulence in the market in the short term, but there is great potential in the long term," Han said.

The group entered the real estate industry in 1992, and the revenue of its real estate unit accounted for nearly 90 percent of the group's 98 billion yuan in revenue last year. Its home sales rose nearly 50 percent last year, making it the second-largest property developer, and accounting for 1.96 percent of the whole commercial residential building market.

Sales from Poly Group's real estate business rose five-fold from 2008 to 2012.

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