Beijing, Tianjin and Hebei regions will become China’s third regional economic growth pole after the Yangtze River Delta and Pearl River Delta. Tianjin, possessing multiple advantages, is becoming an economic engine like Beijing, with the aid of the joint development of the Beijing, Tianjin and Hebei regions. As the high technology centre in the Beijing, Tianjin and Hebei regions, Tianjin’s Binhai High-tech Zone will undertake the high-end industries shifted from Beijing in view of its advantages in industry infrastructure and transport. This is expected to drive the development of Tianjin’s new central business zone located in the core hub.
In terms of Binhai New Area’s property management companies, there are a total of 252 property management companies in the Binhai New Area, amongst which there are 5 companies with grade 1 qualifications, 12 with grade 2 qualifications, and the remaining 235 companies either with grade 3 or being temporarily classified as having grade 3 qualifications, which is basically consistent with the city’s overall proportion of grade 3 qualifications being 93.2%. The average profit margin of companies in the Binhai New Area is between 5% and 8%, the overall level of which is higher than the upper limit of the city average, indicating its strong economic development and profitability of the industry compared to the rest of the city.
Hongfa Property Management, located at the TEDA of the central area of Binhai New Area, obtained information from the TEDA Property Management Promotion Association that in the area as at 30 December 2014, there are 81 registered companies, amongst which 3 companies have grade 1 qualifications, accounting for 3.7%, 4 companies have grade 2 qualifications, accounting for 4.9%, and the remaining 74 companies have grade 3 qualifications, accounting for 91.3%, similarly reflecting that the vast majority are grade 3 enterprises. The overall revenue of the industry in 2014was approximately RMB1 billion (approximately A$224 million*), amongst which the revenue from property management services was RMB 980 million (approximately A$220 million*), accounting for 98.0%, and other revenue was RMB 20 million (approximately A$4.49 million*), accounting for 2.0%. According to our market experience within the industry, industry profitability within TEDA typically does not fall below the 5–8% of Binhai New Area. It can be seen from the above that the revenue from traditional property management services dominates the overall revenue and the profit level is obviously higher than the average city-level and area-level profit levels. There are about 130 property projects in the area. In terms of project categories, there are 10 industrial parks accounting for 7.7%, 21 commercial (including office) parks accounting for 16.1%, and 99 residential parks accounting for 76.2%, of which industrial and commercial property projects account for 24%. Based on our experience, it can be inferred that the average profitability of the industry as a whole will also be higher than the average level of the city as a whole.