Radar | Beijing | 22 December 2021 | Xiong'an new area: 2022 brings expectations of new supply and updated policy guidance

Dear Valued Client,

TheXiong’an New Area is a major new city being developed in the North China region. The new area was announced in 2017, and after completing an initial planning period, large scale construction began in 2019.

The new area has two major goals: 1) to ease pressure on Beijing by taking over functions not related to the city’s role as a capital city, and 2) to promote better coordinated development between Beijing, Tianjin, and Hebei province.

Currently, the Rongdong area of Xiong’an is being developed as the pioneer area and is mainly used for resettlement of residents from other areas.

Infrastructure development such as railways, highways, and hospitals is also in progress. Hospitals and schools in Beijing have established partnerships with local institutions to give residents access to high-quality social services.

The area’s top-level design is already clear, but the specific implementation details have not yet been released. As key commercial projects are scheduled to reach completion starting in 2022, we expect the release of policy details to accelerate. We recommend the market pay attention to:

• Policies related to talent attraction and tax incentives
• Construction progress of commercial projects and key supporting facilities
• Successful relocation of the first batch of state owned enterprises

These factors play a leading role in the pace of further development of the new area.