Shui On Land

9 Feb

Our visit with Shui on Land and presentation by Robin taught us a lot about real estate and the level of control the government plays when it comes to owning land in China. Shui On Land was founded in 1971 by Vincent H.S. Lo, the ‘King of Relationships’ and the 16th richest man in Shanghai. It became listed on The Stock Exchange of Hong Kong in October 2006 and employees 1,300 individuals.

Shui On Land has a land bank of 13 million square metres (over 14 million yards) which is sufficient for 8 years of development. Their core competencies include master planning, property development, property investment, and property management.

Shui On Land created the clean and classy Xintiandi area, which is the cities more famous landmark and metaphor and model for growth with Shui On Land. The Xintiandi landmark was created to drive property value. Shui On Land wants to become the premiere innovative property developer in the PRC.

One interesting thing we learned is that most buildings in Shanghai (other than skyscrapers) are no higher than 34 floors. Once a building is taller than that, there are significantly more requirements that need to be met. This is to build sound structures capable of withstanding events such as an earthquake.

Robin told us that the company cares about three things: Knowledge, Innovation, and Community. What does the government care about? Well, she told us that too.

Basically, they don’t want people to buy property as investments, which explains why property down payments are about 40% for your first place, and about 60% for your second. (If you are wondering whether some people get ‘divorced’ in order to buy two houses for cheaper, they do.) The government also wants to provide affordable housing (to prevent a bubble burst). Chinese people don’t get interest from banks, and put all of their money into housing- even though they don’t ever get to actually own it. I guess they are used to it, but it must be frustrating for foreigners.

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4 Responses to “Shui On Land”

  1. Kristen Jentzen February 13, 2011 at 6:52 pm #

    Really enjoyed this visit. Learning about the residential and commercial real estate projects and how the various regional differences affect the company’s projects highlighted just how diverse the market is.

    • Elena Strasser February 21, 2011 at 7:45 am #

      The projects of the Shui on Land Group were of such magnitude, only found in China.
      It was quite fascinating to learn about all their initiatives and plans they have going on simultaneously and imagine the impact these projects will have on society and communities.

  2. Jenny Dakins February 19, 2011 at 11:29 am #

    Nice article. I was checking continuously this blog and I’m quite impressed! Very useful info specifically the last part. I care for such information a lot. I was seeking this particular information for a very long time. Thank you and good luck.

  3. Carrie Li February 24, 2011 at 11:26 pm #

    It was amazing how they can test the market even with such a big real estate project. Even though the end product may not be accepted by the general public, they can still adjust to adapt.

    The best slide was the explanation of Eastern vs. Western communication skills. It was such a simple yet clear picture of the difference in culture.

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