China's commercial retail sector is becoing the target of investors eager to benefit as mainlanders use their rapidly growing income to buy lifestyle products, reveals The Wall Street Journal.
"Regional shopping centres will become the next winning property sector in China for another 10 to 15 years," Ren Rong, chief executive of Harvest Capital Partners Ltd. told the Journal. The Hong Kong-based property investment firm Harvest Capital Partners Ltd. plans a push into shopping malls in China's second- and third-tier cities as a path to growth, says the Journal.
In a separate interview with the Journal, blue-chip developer Hang Lung Properties Ltd.'s chairman, Ronnie Chan, says malls in big mainland cities are his favorite investments, adding "all provincial capitals are going to be good places to be at."
According to the Journal, the growing interest in retail property also comes amid broad uncertainty about China's outlook. The nation's economic growth has roared back since the global financial crisis, thanks in part to a huge stimulus package. Property prices across 70 large and midsize cities rose 3.9% in October from a year earlier, the fastest annual growth rate this year and a fifth month of rising prices. That has led to concerns that prices will weaken once the stimulus ebbs.