• In 2030, eight Chinese cities among the top ten on our ranking scale will see their GDP surpass the current levels in Singapore and Hong Kong; Shenzhen’s wealth will match Singapore’s current level while Hangzhou’s wealth moves closer to the current level in Hong Kong
• Wuhan and Guangzhou are future mega cities with the highest growth potential in almost all asset classes
• Hong Kong and Singapore will keep their leads but real estate growth potential is likely to be slower compared to China’s mega cities. Read More
Wealth, innovation and liveability will shape new mega cities. To identify the new mega cities in 2030 in Asia, we looked for cities that can create wealth via innovation and house top talents through offering a high-quality liveable environment. Among the 302 regional cities we analysed, China will house eight mega cities by 2030 as their GDP surpasses the current levels in Hong Kong and Singapore. Singapore and Hong Kong will remain as the wealthiest cities in Asia while Shenzhen, Shanghai, and Hangzhou will surpass or match the current level in Hong Kong.
Real estate in Wuhan and Guangzhou seem undervalued in view of their strong economic growth potential. Our indepth analysis compares economic potential of these mega cities against current real estate prices in all asset classes. In 2030, our analysis suggests that Shanghai and Shenzhen will replace Hong Kong to become the largest Grade A office markets. Beijing, Shanghai and Guangzhou will see stronger retail rental growth than Hong Kong as their retail rents are relatively low compared to their growth potential in terms of retail sales per capita. Inter-regional connectivity will support Hong Kong and Singapore’s property market, but growth rate will decelerate.
Source : DBS Group Research