Much has been touted about the influence urbanization trends have had and will have on China’s economy and real estate markets as the country shifts from export-driven growth to domestic-led consumption from a burgeoning middle class. And how could it not be the focus of great attention — an estimated 1.5 million people per month will move into Chinese cities through the remainder of this decade, notes PwC’s recent report, Real Estate 2020: Building the future.
The Chinese government is looking to smoothly transition people into its cities to encourage domestic demand and the nation’s future growth, and in mid-March came out with the National New-type Urbanization Plan (2014–2020). According to Xinhua, China’s state-run news agency, unlocking “consumption potential” through increased urbanization will raise demand levels for housing construction, public service facilities and the urban infrastructure needed to support such growth.
All good things, right?
But there remains a darker side of this urbanization trend, notes American Public Media’s Marketplace in a recent report, “Diabetes’ new frontier: China.” The more sedentary, fast food–based lifestyle of busy city workers and professionals has helped increase the rate of diabetes in Chinese adults to at least 10 percent from less than 1 percent in 1980. And China’s issues with toxic smog as the nation builds its future don’t make going outside to exercise any easier.
So public service facilities — healthcare facilities specifically — may play a growing role in China’s wealthier future.
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Jennifer Molloy is editor of The Institutional Real Estate Letter – Asia Pacific.
