Rich cultural property development opportunities

greater bay area

While the implementation of the Greater Bay Area development has begun, large deals of commercial property transactions have been frequently observed across the area, reflecting the market’s confidence in the region. However, alternative commercial property development opportunities and a combination of the culture and property real estate market are yet to be explored by investors. Composed of cultural, lifestyle and living ideas and elements, the value of a property is often influenced by the authorities’ planning, landscape and architectural design, as well as the subsequent marketing systems and property management services available upon completion. To enhance the quality of a visitor's shopping experience, a certain degree of cultural and creative components have been seen in some commercial properties. 

In recent years, Mainland China’s cultural industry has been gradually evolving into different development models. Among which, the Beijing 798 Art District represents the ‘museum model’ whilst the Chenghuang Temple and Tian Zifang in Shanghai are successful models showcasing elements of the culture, business and tourism and creative industries, respectively. From these different types of models, developers can gain diversified revenue sources, including primary market development, investment, management and business developments which account for the largest share of revenue. Under the commercial and tourism development model, developers can earn not only tourism revenue, but also land development rights and real estate sales profits within proximity of these development projects. Nonetheless, with successful development of creative industrial parks, there are usually increases in rent which trigger gradual relocations of creative studios which result in a formation of a new district to replace the creative industry of the original location. Many existing cultural areas in the Greater Bay Area that are subject to continuous development, including Shenzhen’s Dafen Oil Painting Village and Guangzhou’s Red Brick Factory, will enhance the value of properties in the region.

In addition, there are at least twenty small old towns that are waiting to be transformed into assets with better prospects. Among recent successful cases is the Hongbo City project in Dayong Town in Zhongshan, Guangzhou, which has a 40-year long redwood industry history and an investment value of RMB 4.8 billion. As the historic complex was built during the Tang, Song and Ming Dynasties, and in the Republic of China, the total land size of the project is equivalent to 300 acres and the construction area accounts for 800,000 square metres. It is worth noting that these types of projects, from planning to full completion, take a long period of time. Non-government development projects require policy assistance to provide continuous and rapid project promotion processes and channels. As a result of the development in the Greater Bay Area, more business opportunities are expected to be created and become available. The market’s hope of properties that can help demonstrate and preserve the South China region’s culture, as well as attract talents, is just around the corner.