China’s Troubled Developers May Find Solace in Managing Peers’ Projects, Analysts Say

As the tightening flow of cheap credit into China’s property sector puts real estate companies in a perilous position, analysts say that many developers may see providing project management services as a profitable and asset-light alternative.

At least two large real estate developers’ Hong Kong-listed project management units reported healthy growth last year despite turmoil in the overall market. Greentown Management Holdings Co. Ltd. said it took in an estimated 7.1 billion yuan ($1.1 billion) in fees from new projects in 2021, rising about 22.3% from the previous year, according to a Monday company filing.