Real estate companies began to leave three and four tier cities (small cities) last year. With more expected to depart this year.
According to National Bureau of Statistics, real estate market in three or four level cities become more and more difficult for real estate companies to gain profit.
Wanke Corp., a giant real estate company in China, said:” when considering starting our business in a new city; only those cities with population, infrastructure, industry, and employment to support the housing market will be taken into account.”
Beijing Capital Land, a real estate company, said:” in addition to Beijing, Tianjin, Shanghai, Chengdu and Chongqing 5 core cities, we do not take into account any other second line cities; and three or four line cities absolutely does not take into account, "