Asia’s first-class plastic surgery hospital, “according to the promotional brochure for the large, Chinese palace-style building near the port of Tianjin.
With almost 100 VIP suites and doctors from South Korea with Chinese customers US $ 2,400 nose jobs and the US $ 1,000 double-eyelid sculptures, the cosmetic surgery palace is a gamble from one of China’s most indebted developers, China Evergrande Group: into health care To get business as a new strategy to increase profit. It is a game that takes advantage of cheaper prices for the health care country and allows developers to reap a premium for nearby residential towers that provide home buyers with easy access to hospitals, clinics, or nursing homes. Developers are also betting they will be able to rake in profits directly from rising demand for medical services.
With the rapid growth of the real estate market expected to slow down in the coming decades, companies such as Dalian Wanda Group and Evergrande, as well as smaller players including Tahoe Group Co. of Fuzhou, are pouring in billions. Dalian Wanda has so far announced to invest at least 85 billion yuan (171 billion US dollars) in 13 hospitals, including an ambitious hospital park with 30 Heath Care companies based in Chengdu. Suning Universal Co, formerly a residential property developer in Nanjing, has given up building plots to invest in cosmetic surgery clinics China-wide with a 5 billion yuan fund, mainly to invest in such hospitals. It bought one in Shanghai in November.
“What developers really expect from the building of hospitals is to increase real estate prices by adding value to the complex by integrating all these facilities,” said David Hong, Hong Kong Research Director, China Real Estate Information Corp. “For a hospital itself, the return on investment is usually pretty bad. The developers usually want to make experimental trips to see if they can benefit from related stores.” In Tianjin, the prices in Evergrande Oasis, the Residential complex next to the plastic surgery hospital – which opened a hot-spring spa called Paradise and a European “super five-star hotel” – rose 16 percent to 8,474 yuan a square meter In 2016 after the hospital opened, Consultant Savills Plc. The jump was more than twice as high as in the same period with a project by Shenzhen Overseas Chinese, a smaller developer who did not build any health services nearby that show data.
New Era Evergrande Health Industry Group, the unit pushing the health care push, said China has entered a new era of consumer growth, and the demand for health and beauty is on the rise. Evergrandes other ventures include 12 health management centers that provide primary and elderly care and a 5 billion yuan cancer hospital associated with Boston Brigham and Women’s Hospital, located in Boao, on China’s retirement island of Hainan.