Guangzhou has recently added a new category to the city’s definition of industrial land, which should boost development of new-economy industries. Urban land can now be more easily adapted for use in “industrial upgrade” investment. It specifically refers to usage for research and development, creative industries, pilot testing, pollution-free production and other “related industrial functionality and ancillary services”.
According to a report by Cushman & Wakefield, land acquisition costs for these types of projects will be relatively low and can create a new model for urban renewal. Zhang Tingting, a company executive, said that urban renewal policy has been evolving from simply a focus on improving the housing environment to building new communities that combine industries with township living.
Under the new classification, projects can allocate up to 30% of their total area for building commercial and residential facilities as well as public services. Previously, industrial land projects could allocate no more than 7% to complementing facilities. More importantly, 50% of the land can be transferred and sub-divided to attract individual investors or enterprises engaged in production, R&D, design and industrial services.
Market analysts forecast that competition for commercial properties in Guangzhou’s non-core areas will soon heat up.
Read more (in Chinese).