Daily news and Commentary on the Chinese Real Estate sector
Real estate funds channel into second and third tier cities
Jun 14, 2012
- Due to the housing regulation in first-tier cities, some sizeable real estate developers expand their business in second and third tier cities, which results in the fast growth of real estate fund financing.
- The reason why real estate funds favor the investment opportunities in second and third tier cities is because of the low project cost and high annualized yield.
- The sales performance in second and third tier cities of major developers is one of the criteria for real estate fund to enter the region.