According to Hong Kong developers, the next wave of retail development is in Chengdu, the metropolis of 11 million people living and working in China's largest industrial base in western China. The city is also one of the country's biggest centers of technology and logistics. discount
Swire Properties Ltd., a 40-year-old firm, is to construct a retail and office complex worth Yuan 6.4 billion ($1 billion) in downtown Chengdu by early 2014. Swire Properties also looks for projects in other Western Chinese cities including Chongqing and Xian, according to recent corporate statements.
In addition to Henderson Land Development Co. and Wharf Holdings Ltd., Sun Hung Kai Properties Ltd., the second world's largest property company, is also building new retail companies in Chengdu. Chengdu rivals with Chongqing as the western economic center of the country.
The Daci Temple, a historic site near two metro lines, is the focal point of Swire's Chunxi Road project. The Swire project will comprise about 1.2 million square feet (111,484 square meters) of mostly street space.
According to corporate statements, the 4.7-million square-foot high-end residential and commercial complex, Chengdu IFC, between Hong Kong's Times Square and Harbor City, will be completed by the mid-2013.
Twelve years after Beijing pushed developers and residents to "Go West," the newfound interest in western China is coming. Western China was anticipated to reach wealthy coastal cities, such as Shanghai, some 2000 kilometers east and Guangdong Province, south.
Analysts note that developers gambled on the western sector despite property constraints imposed by the national government, which have resulted in almost three years of China's slower economic development.
Since 2009, home prices have increased by 80%, leading the government to adopt stringent new building regulations in order to prevent prices from rising. As a result, developers in Hong Kong are exploring for new markets outside their own jurisdiction.
According to Savills Plc and CBRE, located in London, Hong Kong is the most expensive residential and workplace place in the world.
Following the 2008 Sichuan earthquake, which has killed over 87,000 people, the federal government has boosted its investment in projects in Chengdu. More than 4,000 people perished around the province capital Chengdu, which is roughly 80 kilometers from the seismic epicenter.
Western China remained mostly undeveloped. The restoration of Chengdu is now the Chinese government's top goal.
According to the latest economic data from Beijing, the GDP of Chengdu expanded 15.2 per cent in 2011, compared with 11.9 per cent for towns managed separately from provincial governments. These towns include Guangzhou and Shenzhen in the south, and Dalian in the north.
Even during the Shang era, almost 3,000 years ago, according to Wikipedia, Chengdu was the hub of ancient Chinese civilisation.