The unfortunate fate of the Chinese economic slowdown has now been widely covered and reported on. Amid the asset bubble panic that has gripped the world, the Urban Land Institute revealed a list of cities that investors are flocking to, to seek some respite and avoid a harsh crash.
The report titled "Mainland China Cities Survey 2014" is an annual review conducted on 36 of the largest cities in mainland china to gauge investment and real estate development prospects in the country.
The report, conducted over the first four months of 2014, revealed that there was an 8.6 percent decline in ratings of all the cities surveyed. It also claimed that investors are now abandoning the so-called second-tier or third-tier cities (better known as the ghost cities) and flocking to major ones like Beijing and Shanghai to evade a hard landing.
Underscoring the oversupply, the report notes that while the residential units may fill up soon by the "economically active cities" of China, the commercial and retail properties will have trouble finding crowd.
"As the Chinese real estate market slows down, investors remain confident on the outlook for Mainland China's Tier 1 cities. The survey shows that people are comfortable operating in the major cities including Shanghai and Beijing which have strong underlying market fundamentals, but are increasingly cautious about the prospects for many Tier 2 and 3 cities, especially those with oversupply issues such as Chengdu, Tianjin and Shenyang," said Ken Rhee, chief representative in Mainland China and co-author of the report, in a statement.
The study found that while the top five cities in the list were major business cities, some two-tier areas like Nanjing, Suzhou and Wuhan were doing well, making it to the top ten rated cities.
Below is the list of the top 10 Chinese cities that have been rated as most appealing by investors during the downturn:
1. Shanghai (ranked #1 in 2013)
2. Shenzhen (ranked #6 in 2013)
3. Beijing (ranked #3 in 2013)
4. Guangzhou (ranked #7 in 2013)
5. Nanjing (ranked #9 in 2013)
6. Wuhan (ranked #4 in 2013)
7. Suzhou (ranked #2 in 2013)
8. Xiamen (ranked #13 in 2013)
9. Zhuhai (ranked #18 in 2013)
10. Hangzhou (ranked #5 in 2013)
The report also rated liveability in Chinese cities of which, Shanghai, Hangzhou, and Xiamen grabbed the top three spots.
Read the full report here.
As experts said that the Chinese economic bubble has already begun to burst, many fear that it could trigger a global financial crisis. However, some have argued that this meltdown can easily be avoided if the right measures are taken.
