Since this year, the stock market has been volatile, and the residential market has been under the continuous policy control, but the commercial real estate has been bullish. On October 23, a super-platinum five-star hotel of Evergrande Real Estate (3333.HK), located in Chongqi, opened officially. This is another masterpiece of Evergrande Real Estate following the opening of the first flagship store of Guangzhou Evergrande Royal Senic Peninsula. This tourism complex project with the investment amount of several billion yuan also means that Evergrande is accelerating the planning and preparation of commercial real estate.

“This hotel project integrates six functions including touring, leisure, convention and exhibition, with the total investment amount of several billion yuan.” said Xia Haijun, Vice-chairman of the Board of Directors and President of Evergrande Real Estate. The total area of the project is up to 150, 000 square meters, among which, the overall floor area of the Hotel is up to 60, 000 square meters, and the six supporting centers is nearly 100, 000 square meters. This is a pioneering “six plus one” super large-scale tourism complex project of Evergrande Real Estate.

Mr. Xia Haijun also said, “after the opening of Evergrande Hotels in Guangzhou and Chongqing, we will launch Evergrande hotels successively in Shanghai, Tianjin, Chengdu, Wuhan and Nanjing. Then all the hotels will associate the operation and integrate the resources to build high-end brands of the hotels.”

Liu Guanghao, Research Director of Industrial and Commercial Market of China, said to the reporters, “the commercial real estate has been gradually valued by the market since the beginning of this year, which is especially obvious in the first-tier cities in the country. Both the supply volume and the trading volume of the first three quarters presented the steady growth.”

“If from the standpoint of real estate, the long-term investment value of commercial property has significant advantages over that of residential buildings.” He said, “it is estimated that under the policy environment at present, the development of commercial real estate should be more vigorous. Many large-scale developers focusing on residential projects previously have entered into commercial real estate in succession, so it is believed that the market heat of the fourth quarter will greatly exceed expectation.”(From Daily Economic News)