Asset management trend set to dominate sector

Property management does not begin and end with daily maintenance, according to an industry expert. Instead, the trend for "asset management" that has developed on the Chinese mainland has been especially important for owners of high-end office buildings, he said.

Real estate asset management has only become an important concept in the property sector in Shenzhen, Guangdong province, in the past five or six years, according to Mike Chan Yee-ki, head of property and asset management at the Shenzhen branch of JLL Inc, a real estate services company.

The change to the business model came when large developers hit hard times. High-end properties weren't selling, so they ditched the old "build-and-sell" model, and began holding on to newly constructed properties. It quickly became apparent that developers could increase profits by retaining properties.