Real estate firms bank on innovation

Government efforts to encourage rental housing development, a measure intended to curb speculation in the real estate market and support the healthy and stable development of the sector, are prompting developers to shift from conventional models to more innovative approaches, analysts said.

The move is encouraging real estate developers to invest in building operations and management capabilities, in addition to basic development, according to Savills, a global real estate service provider.

In fact, according to Tang Hua, senior director of Savills Shanghai Residential Sales, some developers now focus more on long-term operations rather than the one-shot income they receive from the develop-and-sell model.