The next wave of retail expansion, according to Hong Kong developers, will be in Chengdu, a city of 11 million people living and working in western China's largest manufacturing hub. The city is also one of the largest technology and logistics hubs in the country. dollar plus qatar
In early 2014, Swire Properties Ltd., a 40-year-old company, will open a 6.4 billion Yuan ($1 billion) retail and office project in downtown Chengdu. According to recent company announcements, Swire Properties is also looking for projects in other western Chinese cities such as Chongqing and Xian.
Sun Hung Kai Properties Ltd., the world's second-largest property firm, is planning new retail ventures in Chengdu, as are Henderson Land Development Co. and Wharf Holdings Ltd. Chengdu is competing with Chongqing to be the country's western economic center.
The Daci Temple, a historical monument near two subway lines under construction, is the focal point of Swire's project in the Chunxi Road district. Around 1.2 million square feet (111,484 square meters) of mainly street-level retail space will be included in the Swire project.
According to company announcements, Wharf Holdings Ltd., which runs Hong Kong's Times Square and Harbour City shopping malls, plans to complete the Chengdu IFC, a 4.7 million square foot high-end residential and commercial complex, in mid-2013.
The renewed interest in western China sites comes 12 years after Beijing encouraged developers and citizens to "Go West." Western China was expected to catch up to wealthier coastal areas like Shanghai, about 2,000 kilometers (1,243 miles) to the east, and Guangdong province, in the south, under the scheme.
Analysts point out that developers are betting on the western area despite property restrictions imposed by the national government, which have led to China's slowest economic growth in nearly three years.
Since the beginning of 2009, housing prices have risen by 80%, prompting the government to impose strict new construction restrictions in order to keep prices from that further. As a result, Hong Kong developers are looking for new markets outside of their home territory.
According to London-based Savills Plc and Los Angeles-based CBRE, Hong Kong is the most expensive place in the world to buy a home and rent an office.
After the 2008 earthquake in Sichuan province, which killed nearly 87,000 people, the central government increased its investment in Chengdu projects. Over 4,000 people died in the region around Chengdu, the provincial capital, which is about 80 kilometers from the epicenter of the quake.
Western China has largely remained underdeveloped. Chengdu's revival is now a top priority for the Chinese government.
Chengdu's economy grew 15.2 percent in 2011, compared to 11.9 percent for cities governed separately from provincial governments, according to the most recent economic data from Beijing. Guangzhou and Shenzhen in the south, and Dalian in the north, are among these towns.
Also during the Shang dynasty, more than 3,000 years ago, Chengdu was at the heart of ancient Chinese civilization, according to Wikipedia.