China’s developers use hospitals (and plastic surgery) as lures.
Boosting “housing prices by adding value to the complex”
It’s called “Asia’s top-notch plastic surgery hospital,” according to the promotional brochure for the ornate, Chinese palace-style building near the port of Tianjin. With almost 100 VIP suites and doctors from South Korea offering Chinese clients $2,400 nose jobs and $1,000 double-eyelid lifts, the cosmetic surgery emporium is a gamble by one of China’s most indebted developers, Guangzhou based China Evergrande Group. Its goal: expansion into the health-care business as a way to boost profit.
It’s a strategy that takes advantage of cheaper prices for land the government has designated for healthcare use, allowing developers to then charge a premium for nearby residential towers that offer homebuyers easy access to hospitals, clinics, or nursing homes. Developers are also betting they’ll be able to rake in profits directly from soaring demand for medical services on the mainland.
With the rapid growth of the commercial and residential property market expected to slow in the coming decades, companies such as Evergrande and Dalian Wanda Group Co., as well as smaller players including Tahoe Group Co. of Fuzhou, are pouring billions into health-care developments.
Dalian Wanda has announced plans to invest at least 85 billion yuan ($12.5 billion) in 13 hospitals, including an ambitious hospital park containing 30 health-care companies headquartered in Chengdu. Suning Universal Co., formerly a residential property developer in Nanjing, has given up on building homes to plunge into cosmetic surgery clinics across China. It has a 5 billion-yuan fund to invest mainly in such hospitals; it purchased one in Shanghai in November.
Denne historien er fra June 5 - June 11, 2017-utgaven av Bloomberg Businessweek.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 5 - June 11, 2017-utgaven av Bloomberg Businessweek.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers