The number of real estate companies in China could drop from tens of thousands to just a thousand

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This post was last edited by Thank goodness you're here on 2016-1-4 20:31. From December 20th to 23rd, the 2015 meeting of the All-China Real Estate Chamber of Commerce, themed \"Innovative Services, Leading the Future,\" was held at the Furama Guangzhou Hotel. 　　At the annual forum, many industry leaders in real estate said that phenomena that would disrupt the real estate sector had already appeared in 2015; the changes in this industry were evident in three aspects: the diversification of real estate companies’ business activities, the diversification of methods used for raising funds, and changes in real estate marketing strategies. In the future, real estate companies that rely solely on acquiring land and selling properties will not be able to survive; entering new business areas, leveraging digital technologies, and upgrading their operations will be essential for them. Over the next decade, China’s real estate companies will undergo a major reshuffle, with the number of such companies possibly dropping to 1,000. The \"strongholds\" of real estate companies have become further differentiated: large-scale developers target first-tier cities and even international markets, while third- and fourth-tier cities serve as favorable areas for local small and medium-sized real estate firms. 　　According to data from the **Statistics Bureau in 2012, there were nearly 90,000 real estate companies in China, a result of the rapid expansion during the golden decade of the real estate industry. Today, the golden age is behind us, and the real estate industry has reached a critical point of major restructuring. Li Zhe, vice president of the All-China Real Estate Chamber of Commerce and chairman of the board of directors of Shanshui Wenyuan Investment Group, believes that under the new normal, real estate will become the largest consumer good supporting the national economy; real estate companies still have new opportunities, but in the next decade or so, there will be at most 1,000 real estate companies left in China.