1. China Property Market – an overview of the Major Cities Margaret Brooke, FRICS CEO, Professional Property Services

2. PPSPPS What is China? Population of 1.3 billion 150 or more cities of over 1 million people Rapid GDP growth and demographic changes over last two decades Accounts for 4-5% of world trade Largest recipient of FDI – US$53.5 billion in 2003 Low cost base, growing services sector

3. PPSPPS Major first and second tier cities

4. PPSPPS What drives China’s development? FDI WTO Membership Manufacturing and exports Property development Auto industry Technology development Power and steel

5. PPSPPS Construction Boom! 50% of the world’s cement !

6. PPSPPS Controlling Demand for Property Development Controls on lending to real estate sector following signs of bubble developing Incentives to developers of mass market residential properties Land use rights disposal by auction Selected planning/investment controls Massive infrastructure spending – subject to reviews to prevent overheating

7. PPSPPS Infrastructure developments

8. PPSPPS Huangpu Port – Largest Container Port in Southern China

9. PPSPPS Infrastructure 2020 - Shanghai

10. PPSPPS 2003 – Economic Statistics (JLL) Beijing Beijing Shanghai Shanghai Population Population 14.56 million 13.34 million Transient population Transient population 3.08 million 3.87 million GDP GDP RMB 361.2 billion RMB 540.9 billion Growth rate of GDP Growth rate of GDP10.5% 10.9 % Contracted FDI Contracted FDI US$ 3.27 billion US$ 10.57 billion Total retail sales Total retail sales RMB 191.7 billion RMB 203.5 billion Retail sales growth rate Retail sales growth rate16.6%9.3%

11. PPSPPS 2004 – Property Market US$ psm pm Beijing Beijing Shanghai Shanghai Office Rents/Grade A $20.00$19.10 Office Vacancy Rate 14.5% 17.7% / 13.3% Office Prices/Yield $2,500/9%$2,455/8.3% Residential Rents $17.8$20.50 Residential Prices $1,650/8%$2,350/7.5% Residential Vacancies 23.8%18.3%/17.8%

12. PPSPPS Beijing - Key Drivers Administrative capital Science and technology centre Centre of higher education Culture/tourism Olympics 2008

13. PPSPPS Beijing Projects

14. PPSPPS Shanghai and the Yangtze River Delta - Key Drivers Financial and Commercial Centre Proactive City Governance Pudong Development Zone City Branding Tourism World Expo 2010

15. PPSPPS Pudong 1990

16. PPSPPS Pudong 2003

17. PPSPPS Notable projects in Shanghai

18. PPSPPS Pearl River Delta (PRD)

19. PPSPPS Pearl River Delta – Key drivers Guangzhou and Shenzhen major centres Manufacturing and trade centre Recipient of highest levels of manufacturing FDI Excellent external and export links SEZ and SAR advantages Tourist attractions

20. PPSPPS

21. PPSPPS Some current foreign players

22. PPSPPS Shenyang

23. PPSPPS Dalian

24. PPSPPS Tianjin

25. PPSPPS TEDA Industrial Park Founded in 1984 33 sq.km. By June 2003, 3651 from 69 countries registered 15% return on industrial capital achieved Fortune 500 tenants

26. PPSPPS Wuhan

27. PPSPPS Suzhou

28. PPSPPS Suzhou Industrial Park Land Purchase Price: US$ 20/sqm Factory Rental Price: RMB 0.60/sqm/day Factory Purchase Price: US$365/sqm

29. PPSPPS Hangzhou

30. PPSPPS Chengdu

31. PPSPPS Chongqing

32. PPSPPS Sustainability Government is conscious of sustainability issues and attempting to curb inter-city competition and encourage more integrated planning and development China is a signatory to Agenda 21 and has strong environmental regulations – strong implementation is the problem Difficult to achieve highest standards when so much needs to be done in central and western provinces

33. Thank you for your interest

34. Professional Property Services Limited