SHANGHAI - China's increasing spending power and its unprecedented urbanization campaign are providing great opportunities for property services companies at home and abroad.
UK-based Savills is shifting its focus in China by offering more professional property services to its clients to participate in the housing boom of the world's second-largest economy.
"The attraction for Savills here is that opportunities are great. We have a very strong team in China and there is room to grow. This is a less mature market than London," said Jeremy Helsby, group chief executive of Savills plc, in an exclusive interview with China Daily.
Savills expects to double its business in China in the next five to 10 years organically.
Helsby said the company intends to expand by recruiting more personnel rather than acquiring another company.
Savills has a network of more than 4,200 professionals in 12 key Chinese cities.
Asia contributed 40 percent of Savills' revenue last year, and that percentage is likely to grow at an aggressive rate.
Savills' chief executive was in full agreement with China's recent tightening policy towards the property market because of soaring real estate prices and excessive speculation.
"I think the Chinese government is very good at managing the economy and its markets. If it sees a problem, it takes action. And that's what is happening in the property market," said Helsby.
"All governments want stability in their markets and don't like volatility," he added.
Helsby raised an interesting contrast between China and the UK market - one is rising too fast and needs to be contained while the other wants incentives and solid growth.
"We would love to have China's market, because that's the sign of a booming economy. We have a very stagnant housing market outside London in the UK at the moment," said Helsby.
But the temporary imbalance between the two markets has given Chinese investors a good opportunity. "At the moment in Europe, particularly in the UK, and specifically in London, we have seen huge volumes of global capital coming in the last 18 months," he said.
Currently, many large Asian institutions are investing in the UK and Europe.
According to Helsby, Chinese investors are buying properties in London, largely because their children are studying at university or schools there.
"In London, it is very difficult to build more products, because we have very strict planning laws, so it is very difficult to add to the supply. That helps to preserve value," Helsby added.
Savills' business includes property management, facilities' management, transaction services and property consultancy.
