Wed, Jan 03, 2001 - Page 17 News List

Local property developers pack their bags for China

STAFF WRITER

Stagnation in the real estate market has forced several local property developers to enter or expand their presence in China this year, according to the Chinese-language media yesterday.

The moves have been sped up as political instability and an economic slowdown have abruptly stiffled the domestic real estate market during the second half of last year, the report said.

In response to unfavorable sentiment, Far East Construction Group (遠雄國際集團), a developer specializing in construction of high-rise industrial buildings in the Taipei metropolitan area, has decided to invest in China's real estate market in 2001. It is also considering investing in the development of a high-tech industrial complex in Putung (浦東), near Shanghai, said the report .

In order to keep its investment risk low, Far East Construction will first offer its technological knowledge to its Chinese counterparts in the areas of designing, planning, sales, and even operational management skills, said Chao Terng-hsiung (趙藤雄), Far East's chairman.

Far East Construction has been called on several times by their Chinese counterparts to help construct industrial complexes in China.

Another major developer, Pacific Construction Group (太平洋建設集團), is planning to direct its attention to department stores in China, according to Chairman Chang Min-chiang (章民強).

Currently, Pacific has three department stores in Shanghai, one in Chongqing and two in Chengdu, and will launch a new one in Beijing in April of this year.

Meanwhile, Ruentex Construction Group (潤泰集團) is expected to open more discount wholesale shops, from its current 11 outlets to more than 100 over the next five years.

Chang Ku Building Co (長谷建設) is also stepping up its investment in Shanghai from construction material business to land development projects, said the report.

Though China has become a strong magnet that draws many Taiwanese developers, the Kaohsiung-based Hong Chung Construction Co (宏總建設) has decided to continue its ongoing investment in Southeast Asia.

The company announced on Dec. 28 that it has allotted NT$480 million in the development of an industrial park in Malaysia, the report said.

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