As China’s Developers Struggle, Investors Prefer Property Managers

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One part of the Chinese property market isn’t blowing up

Investors say property managers represent some of the best opportunities in Chinese real estate. They argue that the leaders will benefit from a wave of takeovers—and should be able to keep growing even if new-home sales falter—since residents will keep paying fees and signing up for new services.

J.P. Morgan Asset Management is generally avoiding investing in Chinese developers and instead favors management companies, said Rebecca Jiang, an equities portfolio manager at the U.S. firm. Revenue for China’s property-management industry totaled 1.18 trillion yuan last year, the equivalent of $185 billion, and the firms managed an area of about 8.15 million acres, according to China Real Estate Information Corp. data cited in a recent listing application by Zoina Service Commercial Ltd.

Source: News Formal (newsformal.com)

 

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