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New Economy Real Estate in China –
Market Review & Operational Guide 2023

2023 has brought about the implementation of favorable political and economic policies along with the revitalization of domestic demand and investment. As such, Greater China, the largest emerging market, is set to experience a significant rebound. The new economy real estate industry presents burgeoning growth potential.

Jointly released by Tricor and Asia Pacific Real Assets Association (APREA), 'New Economy Real Estate in China – Market Review & Operational Guide 2023' offers a thorough analysis of China's new economy real estate industry, with specific emphasis on the logistics real estate market. It provides insights into the current market landscape, growth trajectory, and anticipates future trends.

What’s in this report?

This comprehensive report is structured into three chapters, providing an overview of China's new economy real estate industry, exploring its investment and financing models, and examining middle- and back-office operational practices. 

1. Robust Recovery of the New Economy Real Estate Industry

Benefiting from the resilience and vitality of China's domestic market, the new economy real estate industry is set to experience a robust recovery. This growth will be fueled by the continuous expansion of third-party logistics and e-commerce sectors, along with the solid foundation of traditional industries. As the industry moves forward, it is expected to embrace a systematic, large-scale, and intelligent development approach. However, it should be noted that this progress will also present a more complex market landscape with diverse challenges.

2. Influx of Institutional Investors Seeking Stable Returns

The new economy real estate sector is expected to attract a greater influx of institutional investors seeking stable returns. This trend will spur investments in smart parks, digital economy, and AI-related fields. Long-term capital sources such as national sovereign funds, pension funds, and insurance funds will increasingly allocate resources towards new economy real estate, thereby fostering its growth.

3. New Opportunities for Private Real Estate Investment

The real estate fund policy is anticipated to create new opportunities for private real estate investment, resulting in heightened activity in establishing funds and raising capital with a focus on the "new economy real estate" theme. However, changes in the industry landscape are likely to introduce increased complexity and diversity in investment transactions.

4. Growing Focus on Optimizing Operational Efficiency
With the rapid expansion of the new economy real estate industry, flourishing business activities, and a surge in sustainable investments, there will be a growing focus on optimizing operational efficiency. This implies that companies must handle daily tasks effectively, control operating costs, and improve project management capabilities to successfully meet these demands.
5. Significance of Equity Financing
In the new economy real estate sector, equity financing, particularly through fund establishment, holds a significant position. The rapid expansion of the private equity fund industry in recent years has brought about increased regulatory scrutiny and more stringent information disclosure obligations. This has led to a growing need for professional services encompassing industry regulations, compliance reporting, and management reporting.

Download our report and arrange a meeting with one of our specialists
to learn how Tricor helps foreign investors navigate the Chinese market.

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New Economy Real Estate in China – Market Review & Operational Guide 2023