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Creating solid credit and providing professional services are crucial to a real estate intermediary institute, according to the vice-chairman of 21st Century China Real Estate.
Harry Lu, from the US-based property sales franchiser, says he believes that the crucial elements will guarantee the long-term and sustainable development of his company.
Entering China in 1999, the franchiser had more than 200 independently owned and operated franchised broker offices in 15 cities by the end of last year.
A large part of 21st Century China Real Estate's business involves overseas residents, who pay more attention to the reputation of agencies and their efficient services in terms of law, financing, property transferring, appraisals and consultations.
China's booming but embryonic property market leaves room for speculators and illegal brokers.
"Government efforts to overhaul the market and improve relative laws and regulations will help standardize the market and eliminate undesirables," said Lu.
US-based 21st Century Real Estate Corp has undertaken its Chinese operations based on its mature service model, which is regarded as reliable and efficient, according to Lu.
"We have foreign employees working in our broker offices, who are more familiar with the demands, customs and consumption of our foreign clients," says Lu.
21st China is very cautious about business expansion and conducts strict supervision over its franchise agencies.
"Scale (of business) is not the only thing," said Lu. "We prefer stable development."
The company plans to set 2,000 outlets in China's 30 cities with 14,000 professional brokers in the coming years.
"We have not set a specific timetable for the expansion, which will be determined by the market and business conditions," Lu said.
But he is confident in China, which has become the fastest growing real estate market in the world.
In 2003, a total of 1.01 trillion yuan (US$122.05 billion) was invested in the sector, rising 29.7 percent over 2002. The production value of the real estate industry grew by 5.3 percent and property prices rose by 5.1 percent nationwide.
More overseas people are turning to China to buy property.
According to research conducted by Hong Kong-based property consultant DTZ Debenham Tie Leung, residents from Hong Kong, Macao and Taiwan had purchased 0.36 percent of the units sold in Beijing by the end of 2002. Foreigners from other regions had purchased 0.4 percent of the units.
(China Daily April 20, 2004)
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