Summit shows off Chengdu’s advancements in real estate economy
National standards on real estate economy — or building economy as locals call it — were released during the 2020 China Building Economy Global Cooperation Summit, which kicked off on Nov 17 in Chengdu.
The three national standards — on real estate economy, public services with regard to commercial buildings, and commercial building classification — will be implemented in April 2021.
Chengdu in recent years has worked to develop a real estate economy, which implements a new economic form evolved from China’s urban development. Based on the sales and rent of commercial buildings, the local government will be able to attract enterprises, increase taxes and promote regional economy.
“Chengdu is not only a dynamic city with rapid development and a huge consumer market, but also a city with a strong real estate economy,” said Liu Xiaoliu, vice- mayor of the city. “Chengdu regards every real estate economy operator and developer as a strategic partner.”
Last December, the National Standardization Administration approved Chengdu to lead the development of three national standards. The administration also appointed Chengdu to be a national pilot city and promote the work on standardizing real estate- related services.
Wen Feng, an official from the Chengdu commerce bureau, said the release of the three documents blazes a trail for domestic standards in real estate economy. It also gives full play to the demonstrative effect of Chengdu as a leading city in fostering the economy.
Qiu Yueming, vice- president of the China National Institute of Standardization, said: “Chengdu’s real estate economy has not started early. But with the rapid development of local economy, the government, social organizations and enterprises have been innovative in their development.”
According to officials from the Chengdu commerce bureau, the city hopes to establish a high- level development pattern for real estate economy and guide the industry’s selfdiscipline. By doing so, it will improve the real estate economy’s quality while simultaneously promoting the integration of industries and local growth.
According to Chang Gong, president of the Chengdu Institute of Standardization, the most essential part of the three national standards is the standardization of terms. Chang said the new national standards involve 26 items in three categories of real estate economy.
Chengdu’s work is to define the boundary of these terms in their usage to make a unified set of national standards.
“In the past, there were no standards to classify office buildings,” Chang said.
“After the implementation of these standards, developers will be encouraged to plan the future development of office buildings ahead of time, including whether they meet the requirements of A- class office buildings, or whether they can be graded as super A- class office buildings through years of development.”
The specifications of public services for commercial buildings will be used to promote the domestic commercial office buildings to meet international standards.
They will also help enterprises develop better business and facilitate cities to lay out government services such as certification, taxation, insurance and investment.
Real estate economy is a key part and driving force in urban economic development. Through industrial agglomeration, the real estate economy can realize an intensive use of land and boost urban development, officials said.
Chengdu is an economic center as well as a center for science, technology, finance and culture, said Liao Chengzhen, deputy secretarygeneral of the city government. “It’s a hub for cross- border exchanges and international transportation and communication in western China.”
Wolfgang Rudischhauser, consul- general of the German Consulate General in Chengdu, said at the summit that Germany has extensive experience in urban planning and clean energy. It can help Chengdu develop into a world- class city while promoting a pattern of green development.
There are 56 commercial office buildings graded as super A- class and A- class in Chengdu. Those buildings house 230,000 employees across a total area of 3.64 million square meters. The average occupancy rate of high- end commercial buildings in Chengdu exceeds 80 percent.
Zhang Ping, secretary- general of the Chengdu Association of Building Economy Promotion, noted that the economy is different from the traditional real estate industry, as it is related to the planning and zoning of the local economy.
In 2019, commercial buildings in Chengdu contributed about 803.2 billion yuan ($ 122.4 billion) to local GDP and accounted for 72 percent of the gross income of the city’s tertiary industry.
It contributed 115.3 billion yuan to the city’s taxes, accounting for 39.7 percent of the total tax revenue. The industry provided 3.13 million jobs, accounting for 51 percent of the total employment of the secondary and tertiary industries in Chengdu, local officials said.