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China Building Economy Development Mode and Path Planning Report, 2013-2017

China Building Economy Development Mode and Path Planning Report, 2013-2017

Last Update:2014-05-09

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Building economy refers to the utilization of new development of building and idle housing. With the carriers of commercial building, office building, scientific researching building, standard factories, city complex, protective architectures, rural house SOHO, and so on, as well as by the means of renting, selling and cooperation, invite investment and introduce modern services enterprises and urban industry in order to create new tax growth sources and new spot for economic growth, then promote the development of urban economic activities.

Building economy is a high-grade economic format, gathering enterprise headquarters of modern services industry and manufacturing industry, which can collect substantial talents, capital and information; and create sustainable employment and taxation in a very intensive space. The wealthy effect and land saving effect is extremely prominent.

Taking Futian district in Shenzhen as an example, the data shows, currently there are 389 commercial buildings in Futian district. In 2010, there are 50 of them contributing over 100 million state & local tax, with a increase of 16 over the year of 2008, with total tax revenue of 31.146 billion Yuan, accounting for 60.5% of the total revenue in the district, and becoming a core constituent of fiscal revenue. Among the 50 commercial buildings with over 100 million of tax, there are 7 buildings contributing tax over 1 billion Yuan, among which China Merchant Bank building achieved 6.496 billion Yuan of tax revenue, making the greatest contribution to taxation as a single building.

Futian district proposes, during the "Twelfth Five-year" Plan period, building economy will become a carrier of Fution modern services industry and provide industrial space for economic transformation. By 2015, Futian strives for increasing 5 million sqm of newly commercial and office buildings on the basis of 2010, providing 27 million sqm of industrial development space for modern services industry and headquarters in the district. The enterprises in high-end buildings contribute 80% of tax in the total enterprise tax of Futian district.

In Beijing, there are 663 commercial buildings in Chaoyang district, among which there are 41,759 enterprises entering the modern services industry. In 663 commercial buildings, there are 440 office buildings, 115 apartments, 48 hotels and restaurants, 41 other types of buildings, and 19 enterprise single buildings. The office buildings and apartments take up around 80% of total number, with the highest proportion rate. The commercial buildings of Chaoyang district mainly concentrate in Beijing Central Business District (CBD) Functional Zone, Beijing Olympic Functional Zone and Beijing Electronic Functional Zone. Specially, there are 399 buildings in CBD; there are 145 buildings in Olympic Functional Zone; and there are 100 buildings in Electronic Functional Zone. There are 241 buildings in Beijing Xicheng district, and about 12,000 enterprises enter this district, in which there are 52 buildings in financial street, accounting for 21.6% of the total proportion of the district.

The whole financial trading zone in Shanghai Pudong New district has more than 100 buildings, with a total area of 28,000 sqm, among which there are 6,800 sqm of planning development areas. As of the end of 2009, there were 109 enterprises of world's top 500 enterprises settling in Luwan district, Shanghai. There are more than 10 "100 million Yuan Building" (with more than 100 million Yuan of tax payment annually) in the district; moreover, 2 of them are "Monthly 100 million Yuan Building" (with more than 100 million Yuan of tax payment monthly). In 2009, there are 66 commercial buildings in Luwan district, among which the A grade office buildings accounts for 40%, with a tax payment of 7.98 billion Yuan in 2009, taking up 67% of the total 67% of the district's total tax revenue.

Compared to the development of foreign CBDs, which are formed with the market-oriented leading, the development of domestic building economy are more relying on the guidance of government and administrative force. It has gone through an explosive development period, and presents a competitive situation with different types, formats and modes. In terms of the development mode, foreign countries generally divide their zones according to the spatial development, to show different characteristics of different cities. While as to domestic development mode of building economy, the building itself, its space allocation and gathering formats of the building economy are all factors to be considered and discussed, then lead municipal governments to combine their gift and advantages to develop the building economy.

In a sense, the competition in a city has entered a new stage, namely, the modern services industry competition that is represented by building economy, after the prosperous development of agriculture economy and industry economy. Compared with the development of foreign building economy, the time for the development of domestic economy is short and the leading functions of government present prominently in the development, and the domestic economy attaches more importance to specific development paths.

According to the development situation in domestic urban building economy, there are generally 9 development paths in building economy, namely, attracting business; "double transfer" policy (industry and labor transferring); reinvigorating assets; promoting transformation; advantages driven; fine case effect; cultural promotion; and brand services. Depending on specific conditions of different characteristics of resource gift, regional geographic position, industrial structure and so on, different cities choose their corresponding development modes and paths.

Building economy has become new growth spots, new ideas of management and new development mode for cities. It has been recognized and appraised by municipal governments after knowledge economy and headquarter economy. Many governments of large and medium-sized cities have released related policies and measures, in order to promote the upgrading of urban industries, the expansion of urban functions and urban competitiveness. There is a difference between building economy and industrial park industry. Industrial park industry creates incomes depending on large-scale production in vast areas, but building economy generates benefits from the point of view of unit building areas, which creates profits from space. In the future, the development of building economy will be a important factor to evaluate the competition in cities.

With Forward's long-term tracking and collecting market data of building economy, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. The report mainly analyzes the development background of China's building economy; the development environment, development history and development status of China's building economy; the development experience of international building economy; the development analysis of building economy in 50 cities or districts; the cases of domestic benchmarking building economy zones; the development modes and paths of domestic benchmarking building economic zones; the inviting investment and introducing modes of domestic building economy; as well as the development opportunities and strategies & suggestions.

The most distinctive characteristics of this report is forward-looking and timeliness. Through analyzing forward-looking characteristic of abundant first-hand market data, we deeply and objectively dissect China current building economy’s development conditions, policy environment and existing problems. Furthermore, based on future development tracks and years' practice experience of building economy, we conduct prudent analysis and forecast for building economy's future development trend. This report helps building economy investment and construction enterprises, operational enterprises and governmental organizations to precisely grasp current latest developments of the industry. Afterwards, they can make wise operating decisions and define enterprises' development directions.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Building Economy Industry




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