Rising land prices and tighter macro-level policy controls over housing purchases are putting pressure on real estate developers in China. Many have sought alternative solutions to the industry’s traditional asset-heavy business model to cope with an increasingly challenging development environment. One strategy growing in popularity has been the asset-light business model.
Greentown, one of China’s largest real estate companies, has been a market leader in making this transition. Drawing on its construction management business especially, the company has leveraged this competitive advantage to provide third-party construction and project management services in exchange for development fees. Greentown’s case provides valuable lessons in corporate strategy and positioning under changing market conditions. (This report in Chinese.)
