Chinese Urbanization 2.0: Building an Urban Corridor

Roughly 100 cities will at the heart of sprawling urban corridors and megacities. Although it is a story about urbanization and government support for development, it's also a story about demographics. Most of the cities that are winning the population war are in these 100-cities.

iFeng: 中国开启“二次城市化” 未来大约100个城市“有戏”

Old-fashioned real estate companies are mostly cautious in choosing cities to enter. China Merchants Shekou has 60 cities and regions. At the end of 2018, the Yangtze River Delta accounted for 29% of the Yangtze River Delta, 28% of Guangdong, Hong Kong and Macau, and the Bay Area, which has 45 cities in the country. In 2018, the Beijing-Tianjin-Hebei urban agglomeration has outstanding performance, sales and The earth reserves account for 42%, ranking in the forefront of various urban agglomerations.

CITIC Jiantou Securities pointed out that the megacity and megacities will benefit from the agglomeration effect of the population will be the most significant, the proportion of the metropolitan and urban population in the total urban population will be further enhanced, which will be the real estate in the first and second tier cities. The demand side of the market produces long-term stable support.

Yan Yuejin believes that the continuous focus of housing enterprises on 100-cities is mainly due to two considerations. First, the core cities have stable industrial and population net inflows, and they have potential for development. Incremental topping can also be used for stock operations; secondly, urban investment is selected. It also requires more time and money, and companies will choose to dig deep into the cities they have entered.

"At present, housing companies attach great importance to the statistics of sales and land reserves in terms of urban agglomerations. They also reveal that they care about the development opportunities of the urban agglomerations and the market demand behind them." Yan Yuejin said.

For the “capacity” of secondary urbanization, Yu Liang believes that there are still about 20 points of space for secondary urbanization.

Zhang Dawei, chief analyst of Zhongyuan Real Estate, said that China's real estate industry cannot develop rapidly to 70%-80% of urbanization. “The urbanization rate of household registration is 16% lower than the actual urbanization rate. It proves that housing prices have restricted the speed of urbanization development. Real estate has Entering the stock era," Zhang Dawei said.