China Vanke Leads New Trends in Real Estate Investment Amidst Reclassification of China's Tier One Cities

The Chaotian Palace, the highest-ranked and the largest ancient architectural complex in southern China is just one kilometer away from Xinjiekou, the heart of Nanjing's central business district, while the Pavilia Garden is just 300 meters away from the palace, one of the most important cultural treasures in the city of Nanjing. After eight years of planning and several redesigns, and by analyzing and comparing what makes Nanjing distinctive in the same way that Barcelona, New York and Portland each have their special distinctiveness, China Vanke and Beijing Tsinghua Urban Planning & Design Institute (THUPDI) finally determined the best way to reflect and retain the distinctiveness that is Nanjing. In doing so, the two partners have successfully recaptured and recreated the architectural design and style that distinguished the Jiangnan culture that was prevalent along the southern bank of the Yangtze River in and around the region where Nanjing is located. 

The Yangtze River Delta, the area that was the first to benefit from China's reform and opening-up program, covers an area of 212,000 square kilometers and is home to a population of 150.33 million. It is now recognized as the largest urban cluster in the world. Within China, the delta is the country's most economically dynamic, open and innovative region and a huge draw for the many migrant workers from across the country who seek better opportunities. The development of the Yangtze River Delta has had a major impact on the country as a whole, not only affecting the lives of nearly 1 billion Chinese workers employed in the coastal regions, but also acting as China's main engine driving world economic development.

On May 11, China's central government approved the Yangtze River Delta City Cluster Development Plan. The plan covers 26 cities, which, in the aggregate, is equivalent to the entire economy of India. Remarkably, the Plan targets Shanghai as a megacity and Nanjing as a supercity. The development strategy is, nevertheless, led by cities along the Yangtze River, and connects the delta to the population, resources and consumption power of broader mainland China regions via Nanjing. As the only ancient city in southern China that has kept its ancient traditional heritage intact, Nanjing has undoubtedly shored up the confidence that the investing wealth class has in its market, and, with its improvement in cultural position, city temperament and economic strategy, this confidence is only further enhanced.

In 2015, there were 1.21 million people in mainland China who had assets valued at more than 10 million yuan (approx. US$1.5 million) and 17,000 people who had assets valued at more than 500 million yuan (approx. US$75.2 million), according to a report published by the Hurun Research Institute. The conflict between the huge assets of potential buyers and home-purchase restrictions in former first-tier cities has been an issue for a long time. In a context where investment is closely related to policy, Nanjing meets the demand of high-net-worth individuals in terms of investment opportunities.

China Vanke also employed Li Xinggang, chief designer of the Bird's Nest, to create an integration of house and garden, which is modeled after the Canli Garden in Suzhou. The Pavilia Garden is an enhanced version of the Canli Garden and represents the highest level of modern Chinese architecture. Zhu Yufan, landscape designer of The Pavilia Garden, winner of the ASLA award and Dean of Landscape Department of Tsinghua University, has designed eight of the project's communal spaces, by utilizing poems and paintings, the essence of the Oriental culture, and combining emotion with scenery.

It is the first time that many well-known designers have come together for such a project. The project consists of 85 unique buildings, which not only boast profound historical significance but also are in close proximity to all amenities. The project embodies the history of the locale, while looking into the future. The Pavilia Garden will provide high-net-worth individuals who admire Chinese culture a new investment destination in this "special city" within the Yangtze River Delta.

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SOURCE Vanke Nanjing