Mainland developers are turning to tourism-related commercial projects as safer bets than residential developments, which are bearing the brunt of government measures to curb demand and price growth in the sector.
The trend could see strong growth in property projects integrated with serviced apartments and leisure and entertainment facilities, presently in their infancy on the mainland, according to Zhang Wei, deputy general manager of Zhejiang Tourism Jishi Investment.
The investment arm of state-owned Zhejiang Tourism Group was planning to launch a 2 billion yuan (HK$2.45 billion) fund that would focus on investments in tourism-related property projects, Zhang said.
'Where do families go over weekends apart from shopping at malls and restaurants?' he said. 'We believe property projects offering leisure facilities such as spas, hot springs, and 'wellness' centres will see big growth over the next decade.'
Zhang, who was speaking at an Invest in China, Invest in the Future seminar in Shanghai last week, noted that several such projects were under negotiation in a number of cities, though he added that discussions were in an 'early stage'.
The Zhejiang Tourism Group announced last month that it would team up with Zhejiang's Yiwu municipal government to invest 20 billion yuan in the development of a film studio, luxury hotel, convention and exhibition centre, and serviced apartments in Yiwu.
The proposal is in line with a shift last year as developers turned to commercial property development, on which there are fewer restrictions.