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High-speed rail boosts property investment
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CNTV, June 21, 2011
It's a well-known adage that when it comes to property, it's all about location, location, location. As the Beijing-Shanghai High Speed Railway is set to open to the public by the end of this month, a number of property investors and developers have turned their attention to cities along the railway line.
Bengbu, a city in eastern Anhui Province, is connected by the Beijing-Shanghai High Speed rail. And close to the railway station, two newly-built housing developments are attracting interest, thanks to its convenient location.
Cai Wei, sales manager of a property company in Anhui, said, "As the railway is about to be launched, the number of customers from outside Bengbu city has increased by 40 percent. And residents of Bengbu who work outside the city are coming back to buy properties."
Bengbu's property sector has experienced fast development in recent years.
New home prices were just 1,700 yuan per square meter in May 2005. Prices of high-end homes were around 40 percent higher, at nearly 2,400 yuan.
But now the price difference has been narrowed to 25 percent, with average home prices reaching 4,800 yuan per square meter, and high-end homes hitting around 6,000 yuan per square meter.
Since many coastal industries are expected to transfer to inland provinces, property investors are focusing on commercial and industrial properties.
Sun Zhiwei, a property investor, said, "We can see more opportunities if coastal industries begin to expand into inland regions."
And it's not only Bengbu that's benefiting from the Beijing-Shanghai High Speed rail. Other cities along the line are also expected to enjoy the location advantages of the new rail service.
Experts say home prices in third-tier cities are expected to have more room to grow than in first and second-tier cities, where prices are already high.
