Singapore in China. Wrong. Or is it? No, the city-state has not moved geographically, but many Singapore developers are now making more striking forays into the Chinese real estate market.
Singapore City on the border of China and North Korea
In the Chinese border city of Dandong, Liaoning, Singapore developer Brothers Holdings have been building a “Singapore City”. This year has proven to be an especially fortuitous year for the developer as 580 units of their Singapore City development have been snapped up by both local and foreign buyers. In 2017, they sold almost 20 times fewer units.
The Singapore City development currently consists of 2,040 units over a massive land area of 180,000 sq m. It has an estimated completion date of 2020 and by then, up to 900 units will be added to the current numbers including 2 hotels.
The project is located in the new district, also Dandong’s new downtown.
Dandong holds potential for cross-border trade
Dandong shares a border with North Korea and has been experiencing somewhat of a property boom especially after North Korean leader Kim Jong Un’s visit to China in March this year. It is propitiously situated in the regional hub for cross-border trade with North Korea.
With North Korea seemingly coming out of its shell albeit at snail’s pace, does this border region hold tremendous potential for real estate growth?
Prices at the Singapore City development have already risen 50% from 4,000 yuan (S$840) per sq m to 6,000 yuan (S$1,260) per sq m. In the new district, where the New Yalu River Bridge is situated, prices of residential properties here have doubled in weeks.
While some property developers have made their way into North Korea, the uncertainties have proven to be too unwieldy for now.