Prop­erty mar­ket ‘will not col­lapse’

China Daily (Hong Kong) - - BUSINESS - By WU YIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn Reuters con­trib­uted to this story.

Chi­nese billionaire and real es­tate ty­coon Wang Jian­lin said China’s real es­tate mar­ket has bub­bles but will not col­lapse, un­der­lin­ing that peo­ple mi­grat­ing to cities will sup­port de­mand and re­cent gov­ern­ment moves to squeeze bub­bles are tak­ing ef­fect.

Wang, chair­man of the prop­erty-to-en­ter­tain­ment con­glom­er­ate Dalian Wanda Group, made the re­marks in Jakarta on Tues­day.

Wang has pre­vi­ously said that China was see­ing the “big­gest bubble in his­tory”, say­ing that surg­ing hous­ing prices in ma­jor cities such as Shang­hai and falling res­i­den­tial prices in lower-tier cities are bring­ing about a diver­gence in China’s hous­ing mar­ket.

Wang said Wanda has di­ver­si­fied its in­vest­ment port­fo­lio to meet surg­ing de­mand for re­cre­ation, in­clud­ing cinema and sports.

He said the group wants to own 20 per­cent of all cin­e­mas in the world within 10 years, but did not dis­close more de­tails on how it would achieve this goal.

Wanda has been ac­quir­ing cinema chain, stu­dio and pro­duc­tion firms in a bid to in­te­grate re­sources to strengthen Wanda’s global po­si­tion in the value chain of the movie in­dus­try, said Wang at a meet­ing in Shang­hai in mid-Novem­ber.

Wang, in re­sponse to a ques­tion raised by Forbes about what he thought of fel­low prop­erty ty­coon Don­ald Trump, he said Trump’s pres­i­dency could be positive for the econ­omy.

“Can a busi­ness­man be bet­ter than a ca­reer politi­cian? We have to give him a chance,” he said.

Wang said, as a keen fan of soc­cer, he be­lieves that the boom­ing sports in­dus­try will see great op­por­tu­ni­ties for growth in China.

Data showed that China’s real es­tate in­vest­ment growth quick­ened in Oc­to­ber to its most rapid pace since April 2014, sug­gest­ing that prop­erty de­vel­op­ers have yet to feel any no­table pres­sure from re­cent mea­sures to curb spec­u­la­tive home pur­chases and in­vest­ments have been more di­ver­si­fied.

Ac­cord­ing to the Na­tional Bureau of Sta­tis­tics, in­vest­ment in real es­tate in eastern China be­tween Jan­uary and Oc­to­ber 2016 grew to 4.64 tril­lion yuan ($674.2 bil­lion), 5 per­cent year-onyear growth, with Tian­jin and Guang­dong grow­ing the fastest, at more than 20 per­cent year-on-year.

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