Report Highlights

As China's macro economy continues to grow fast, China's real estate industry has shown unprecedented prosperity. Investment in Tier-1 cities continues to maintain fast growth, while new investment opportunities have emerged in many Tier-2 and -3 cities. The government has successively introduced macro regulatory policies for the residential housing sector. Commercial properties which are little affected by the macro regulatory policies have attracted attention from many leading real estate enterprises and foreign investors. A new round of investment in commercial properties has emerged. Listed commercial property companies have also scored remarkable achievements.

Expanded market continues to present huge opportunities and challenges to commercial property enterprises. Which direction will commercial properties take? What kind of property should one invest in? Which city should one invest in? Which areas of these cities present the best investment opportunities? The 2007-2008 Annual Report on Investment Opportunities in China's Cities Commercial Properties will help Enterprises, investors and industry persons to provide the most valuable information from the following aspects:
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Widest market analysis information. Conduct in-depth research on the status of the overall market and market segments in key cities and key business circles, provide a vivid description of market changes from various perspectives and specified development directions.
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More comprehensive and profound enterprise analysis and competition analysis. In addition to summing up enterprises' performance from the aspects of operational status, status of owned properties, successful experiences and future outlook, CCID Consulting also uses the real estate operation value chain analysis method to classify enterprises and provide enterprises with valuable reference information for positioning their values, assessing competitors and looking for partners.

Report Framework

Table of Contents
Research Definitions
Main Conclusions
Key Findings

Chapter I    Overview of China's Commercial Properties Market in 2007

(I) Status
1. Overall investment continued to grow fast. Investment in office buildings grew the fastest.
2. Investment in commercial properties varied greatly from region to region.
3. There was a relatively oversupply of commercial properties.
4. Hotspots of real estate investment shifted from Tier-1 cities to Tier-2 and -3 cities. 5. Foreign capital sped up their entry into China.
6. Commercial properties in medium- and large-sized cities had several centers, and there was a bigger room for commercial properties to grow.
7. Developed of big shopping centers began to cool down, while exhibition properties began to make a fresh start.
8. Staging of the Olympic Games and the World Expo promoted the internationalization of commercial outlets in central cities.
(II) Characteristics
1. Characteristics of development
2. Characteristics of operations
3. Enterprise characteristics

Chapter II    China's Commercial Properties Market Segments and Their Investment Values in 2007

(I) The Office Building Market
1. Amount of investment: The market recovered and investment grew big over 2005.
2. Construction: The constructed area grew big.
(II) The Commercial Operation House Market
1. Amount of investment: Investment grew steadily, but there was a slowdown in its
growth.
2. Construction: The constructed area stabilized.
(III) The Industry Real Estate Market
1. Development zones gradually became the main carrier of high-end, clustering and park-like industrial properties.
2. Development of industrial properties shifted to Tier-2 cities.
3. Industrial land price was generally lower than the average land trading price.
4. Foreign capital's way of investment in industrial properties changed from direct purchase to independent development.
5. Superior quality properties had high rent returns. III. Growth of China's Key Commercial Properties Market, 2007-2010
(I) Beijing
1. Overall market status
2. Status of market segments
3. The commercial properties market in core business circles
4. Driving factors for real estate development and trend of investment
(II) Shanghai
(III) Shenzhen
(IV) Guangzhou
(V) Tianjin
(VI) Wuhan

Chapter IV    Competition Pattern and Behavior in China's Commercial Properties Market in2007

(I) Competition Pattern
(II) Means of Competition
(III) Competition Performance
(IV) Trend of Competitions

Chapter V    Assessment of Key Enterprises' Competitiveness in China's Commercial Properties Market in 2007

(I) Overview of Enterprises
(II) Land Development Type
(III) Combined Land Development and Property Operation Type
(IV) Property Development Type
(V) Property Operation Type
(VI) Investment Type
(VII) Combined industry type

Chapter VI    Driving Factors for China's Commercial Properties Market, 2008-2012

(I) Policies, Laws and Regulations
(II) Finance
(III) The Economic Environment
(IV) Society

Chapter VII    Trend of Commercial Properties in China, 2008-2010

(I) Industry Trend
(II) Structural Trend
(III) Product Trend

Chapter VIII    Investment Opportunities in China's Commercial Properties Market, 2008-2010

(I) Detailed Analysis by Separate Indicators
(II) Recommendations for New Investment Opportunities
1. Investment opportunities in cities
2. Investment Opportunities in properties

Chapter IX    Recommendations

(I) Pay attention to macro policies and avoid system risks
(II) Tap land section values and invest in rare resources
(III) Conduct in-depth market research and find accurate value positioning
(IV) Establish investment portfolios and dynamically control risks
(V) Use international experiences as reference and improve management

Tables

Table 1 Introduction to Five Major Exhibitions in China
Table 2 Main Property Types and Characteristics of Industrious Real Estate
Table 3 Main Cases of Foreign Investment in Industrial Properties in China
Table 4 Key Office Building Rent Increase Transactions in Beijing in 2007Q3
Table 5 Key office Building Transactions in Beijing, 2006-2007
Table 6 Features of Enterprises in Key Business Circles in Beijing
Table 7 Online and Soon-T0-Be-Used Shops in Beijing in 2007
Table 8 Main New Business Projects in the CBD Region
Table 9 Information on On-Sale and Sold Properties
Table 10 Floor Shops' Rents in the Zhongguancun Business Circle
Table 11 Floor Shops' Rents in the Yaao Business Circle
Table 12 Investment Opportunities in New Business Circles in Beijing
Table 13 Status of Some Commercial Properties Acquired by Overseas Funds in Shanghai
Table 14 Shops' Rents in the Top-Class Business Circle in Shanghai
Table 15 Status of Key Business Circles Along the Underground Railway Lines in Shanghai
Table 16 Number of Department Stores and Their Future Supply in Various Business Circles in Shenzhen
Table 17 Comparison Between the Three Major Business Circles in Shenzhen
Table 18 The New CBD in Bao'an District
Table 19 Categorical Commercial Planning for Shenzhen in 2006
Table 20 Key Shop and Office Building Leasing Transactions in Guangzhou in 2007Q3
Table 21 Number of Department Stores and Their Future Supply in Various Business Circles in Shenzhen
Table 22 Top-Class Shops' Rent in the Guangzhou Business Circle
Table 23 new High Star-Class Hotels in Tianjin in 2007
Table 24 Typical Commercial Projects in the Wuguang Business Circles in Wuhan
Table 25 Typical Commercial Projects in the Jianghan Road Business Circles in Wuhan
Table 26 Typical Commercial Projects in the Hanzheng Road Business Circles in Wuhan
Table 27 Typical Commercial Projects in the Zhongjiachun Business Circles in Wuhan
Table 29 Information on Hi-Tech Development's Ongoing Projects
Table 28 Classification of Luijiazui's Ongoing and Planned Long-Term Investment Asset Projects
Table 30 Wanda's Blind Spots and Experiences
Table 31 Information on Vantone's Reserve Projects
Table 32 Status of Development of Shimao's 10 Commercial Property Projects
Table 33 ¡°Restricting-Foreign-Investment¡± Policies Issued by China in Recent Years
Table 34 Changes in Monetary Policies in 2007
Table 35 Operation Statistics on Some Chain Foreign Enterprises in 2006
Table 36 Main Foreign Real Estate Funds Active in the Chinese Market
Table 37 Factors Affecting Investment in and Price of Industrial Properties

Figures

Fig.1 Makeup of Real Estate Investment in China, January--September 2007
Fig.2 Comparison of Office Building Investment and its Growth in Key Cities, 2004-2005
Fig.3 Comparison of Investment in Commercial Operation Houses and its Growth in Key Cities, 2004-2005
Fig.4 Effected Investment in Office Building Investment and its Year-on-Year Growth in China, 2004-2005
Fig.5 Percentage of Effected Office Buildings in Total Real Estate Investment in China, 2001-2006
Fig.6 Construction Area and Year-on-Year Growth of Office Buildings in China, 2001-2006
Fig.7 Effected Investment in Commercial Operation Houses and its Year-on-Year Growth in China, 2001-2006
Fig.8Percentage of Effected Commercial Operation House Investment in Total Real Estate Investment in China, 2001-2006
Fig.9 Construction Area and Year-on-Year Growth of Commercial Operation Houses in China, 2001-2006
Fig.10 Comparison Between Industry Land Trading Price Index and Average land Price Index in China
Fig.11 Schematic Diagram of Track Rail Lines in Beijing by 2015
Fig.12 Supplies in Beijing, 2002-2007
Fig.13 Comparison of Rents Between Superior Quality Office Buildings in Beijing
Fig.14 Customer Distribution in the Finance Street¡ªBy Industry.
Fig.15 Distribution of Industry Parks in Shanghai
Fig.16 Average Sales Prices of Store Premises in Coastal Regions
Fig.17 Current Level of Rents of Business Properties in Various Regions
Fig.18 HiTech Development's Revenues and Profits, 2006-2009
Fig.19 Lujiazui's Revenue Structure in 2006
Fig.20 Lujiazui's Revenues and Profits, 2006-2010
Fig.21 Schematic Diagram of Lujiazui's Ongoing and Planned Long-Term Investment Asset Projects
Fig.22 Schematic Diagram of Zhangjiang Hi-Tech's Enterprise Transformation
Fig.23 Area of Various Properties and Leasing/Sales Ratio in Zhangjiang Hi-Tech Zone in 2007
Fig.24 Distribution of Pudong Jinqiao's Revenues in 2006
Fig.25 Pudong Jinqiao's Revenues and Profits, 2006-2010
Fig.26 Changes in Finance Street's Various Revenue Items, 2004-2006
Fig.27 Finance Street's Revenue Structure in 2004 and 2006
Fig.31 Regional Distribution of the Company's Reserve Projects
Fig.32 Distribution of China World Trade Tower's Revenues in 2006
Fig.33 China World Trade Tower's Revenues and Profits, 2005-2010
Fig.34 Forecast for China World Trade Tower's Future Revenues
Fig.35 Small Commodities City's Revenue Structure in 2006
Fig.36 Small Commodities City's Revenue Structure, 2006-2010
Fig.37 Shimao, 2006-2008
Fig.38 Shimao's Main Business Revenues, 2006-2008
Fig.29 China OCT's Revenues and Profits, 2006-2010
Fig.30 Maoye Group's Layout in China
Fig.39 Amount of Foreign Capital Actually Utilized by China, 1997-2006
Fig.40 Forecast for Investment in Office Buildings, 2008-2012
Fig.41 Forecast for Percentage of Office Building Investment in Total Investment in Real Estate, 2008-2012
Fig.42 Forecast for Investment in Commercial Business Operation Houses, 2008-2012
Fig.43 Forecast for Percentage of Investment in Commercial Business Operation Houses in Total Investment in Real Estate, 2008-2012
Fig.44 Number of Fortune 500 Enterprises' Representative Offices in Cities in China