New Asset Allocation: How Tiantan Mansion Defines Central Value
On September 19th, the Federal Reserve's interest rate cut pressed the "hot start button" for the global market, profoundly impacting global capital flows and asset values. High-net-worth individuals ...
On September 19th, the Federal Reserve's interest rate cut pressed the "hot start button" for the global market, profoundly impacting global capital flows and asset values. High-net-worth individuals have begun to re-examine their asset allocation logic. According to the 2024 Wealth Report published by the globally renowned real estate consultancy Knight Frank, over one-fifth of high-net-worth individuals (22%) plan to increase their investment in the residential market in the future. Notably, this group has shown significant interest and strong demand for "core assets" in first-tier cities.
"Core assets" refer to luxury housing projects in prime locations of first-tier cities, representing the most premium asset allocation for the top-tier clientele and have always been considered highly resilient to risks. The evaluation of these assets emphasizes several key elements: whether they are located in the golden areas of first-tier cities, whether they possess unique cultural and historical backgrounds, whether the surrounding economic activities are dense, and whether the amenities are comprehensive and mature, as well as whether the high-end living atmosphere is strong.
Located in the precious land of Beijing's inner city, Beijing Urban Construction's "Tiantan Mansion" is a core asset that meets these criteria. Its resource concentration, cultural heritage, and the maturity of its business district are all leading by a significant margin compared to other areas. Moreover, with its million-square-meter grand composition, it creates a rich high-end living atmosphere, making it a preferred choice for global high-net-worth individuals in asset allocation.
Living Returns to the Center
Scarce Second Ring Assets are in High Demand
In recent years, luxury housing projects located in the city centers worldwide have maintained strong growth momentum. Their central geographical location, unique historical culture, and dense economic activities make these properties an important component of high-net-worth individuals' asset portfolios.
According to a report by the international real estate service company Savills, the luxury housing market in central London was particularly active in 2023. The number of luxury home sales over £5 million exceeded any year from 2013 to 2020, with a total transaction value of £5.7 billion. More than half of these luxury home transactions occurred in traditional central golden areas such as Chelsea, Kensington, and Knightsbridge.
This high favor for "core assets" is not limited to London. In Beijing, China, this trend is also evident. Located in the second ring of Dongcheng, facing the Temple of Heaven to the north across the road, Beijing Urban Construction's "Tiantan Mansion" has seen a total online signing amount of over 30 billion yuan since its first phase was launched in 2021, setting a new record for the historical single-disk sales amount of residential properties in Beijing.
Independent of market fluctuations, this not only demonstrates the value of Tiantan Mansion but also reflects the continuous strong demand from Chinese high-net-worth buyers for high-quality properties in the city's core areas. In their view, such "core assets" often show good resilience through cycles.
The preference of high-net-worth individuals for Tiantan Mansion is partly due to the dual enhancement of its location value and national craftsman quality. In terms of location, Beijing is the political and cultural center of China, and the inner city carries the essence of Beijing's history and culture. The planning and design concept of Tiantan Mansion are deeply rooted in historical and cultural heritage, with a symmetrical layout along the central axis, inheriting the imperial city layout of over 860 years; the low-density buildings of 7-10 floors, with private gardens based on the blueprint of "Qianlong's Southern Inspection Tour," inherit the millennia-old historical context, creating an inner-city mansion that matches the living needs of high-net-worth individuals.On the other hand, as the cultural center of the capital and a window to the world city, the inner city is also the area where high-quality urban supporting resources are most concentrated. Tiantan Palace seamlessly connects to the core business districts of the city such as Dongdan, Xidan, Financial Street, and Guomao, enjoying the prosperity and convenience of the city; surrounded by nine major parks including the Temple of Heaven Park and Longtan Lake Park, it has become one of the most naturally beautiful and tranquil areas along the second ring road in the inner city; dozens of academic institutions are gathered around, and the Huimin Middle School South Campus, which was built to accompany it, started classes last September, fulfilling the promise of high-quality educational resources.
Furthermore, on this extremely valuable land with concentrated resources, Tiantan Palace has also created about 60,000 square meters of high-end commerce - Tianyu Commercial Street. Its international and open commercial street format, which complements the commercial format positioning in the area with differentiated supplementation, will attract various high-end brand flagship stores in the future, bringing about an upgrade of the city's interface and a renewal of lifestyles.
Technology Returns to the Center
Highland of Science and Innovation Renews Regional Value
In Beijing, the trend of "technology returning to the city" is becoming prominent in 2024. In June of this year, the "Work Plan for Deepening the National Service Industry Expansion and Opening-up Comprehensive Demonstration Zone in Dongcheng District" was reviewed and passed. In August, the "Action Plan for Accelerating the High-quality Construction of Silicon Alley in Dongcheng District (2024-2026)" was released, which clearly aims to create a new ecology of science and technology innovation industry aggregation and accelerate the construction of "Silicon Alley."
"Silicon Alley" refers to the aggregation of science and technology innovation industries mainly based on urban space renewal and the return of technology to the city. It is an important way for the central urban area to integrate into the development of emerging industries and urban renewal under the background of technological competition.
The introduction of a series of policies marks a significant step in scientific and technological innovation for Dongcheng District, and the strategic renewal of urban space and the in-depth integration of the science and technology industry into a new stage. Against this backdrop, the construction of the "Silicon Alley" carrier space is particularly important. The "Action Plan" points out that the quality of some scientific and technological innovation space carriers in the district still cannot meet the needs of scientific and technological innovation enterprises, and the supporting facilities and service supply need to be improved.
Understanding the overall trend of the times, Tiantan Palace, located in the inner city of Beijing, has planned about 70,000 square meters of smart international office space - Tiantan Smart Port, with a meticulously designed international ecological office space and a comprehensive and sophisticated service system, truly benchmarking the world's first-class science and technology innovation blocks.
As a strategic platform for emerging science and technology innovation enterprises to return to the core area of the city where land is extremely valuable, Tiantan Smart Port shows significant advantages in several key aspects: seamless connection with core business districts such as Financial Street, close contact with the market and capital, strong attraction to innovative talents, effective shaping of brand image, and convenience in obtaining policy support. These factors together make Tiantan Smart Port the first choice for emerging science and technology innovation enterprises, perfectly承接ing the global trend of technology returning to the city center.
With the settlement of more science and technology innovation enterprises and professional science and technology talents, Tiantan Smart Port has not only become a hot spot for scientific and technological innovation but also an important force in promoting the diversification of regional economy and urban redevelopment, enhancing the value and attractiveness of the entire region.Today, Guojiang Beijing Urban Construction has created a masterpiece of over a million square meters, Tiantan Palace, near the Temple of Heaven in the second ring road of Dongcheng, which not only possesses the value logic of "core assets" favored by the global ultra-high net worth population, but also has fully entered the value realization period from high-end residential to educational support, from commercial blocks to scientific and innovative spaces. At present, there are still a few classic works of about 150-280 square meters on sale, which is a great opportunity for high net worth individuals to collect "core assets" in the inner city.