China 14th Five-Year Plan Key Highlights for Real Estate March 2021
Enhance the quality and efficiency of the economy via technological innovation and consumption upgrading.
Reduce the negative list for foreign investment and establish a high-standard free trade zone under the Regional Comprehensive Economic Partnership (RCEP).
The reduction of the negative investment list and promotion of integration among primary, secondary and tertiary industries will generate strong office upgrading demand from service industries.
Leasing activity will be led by technology and finance companies, supported by the “dual circulation” policy.
Ongoing promotion of green technology and financing will stimulate demand for green buildings.
Tier I and key tier II cities will see growing consumption power resulting from urbanisation and continuous population inflows.
Demographic change, the accelerated development of new retail formats and faster growth among Chinese brands will initiate re-positioning and tenant mix adjustment in shopping malls.
INDUSTRIAL & LOGISTICS：
New infrastructure will accelerate e-commerce penetration in lower-tier markets, spurring demand for high-standard storage facilities in regional logistics hubs and lower-level logistics nodes. Demand for cold chain facilities will be especially strong.
Digital transformation and the rapid deployment of 5G will see China emerge as the world's largest data circle.
The setting up of advanced manufacturing clusters in the eastern region and the Yangtze River Economic Belt will drive demand for industrial real estate such as business parks, R&D facilities, and laboratories.
The launch of public REITs will spur investment in industrial property.
Urban renewal will accelerate as the volume of office stock aged 20 years and over will reach just under 25 million sq. m.
Government policy will support the development of a long-term lease apartment market.