“Shanghai's investment market remains more active than many other parts of the country with strong end-user demand and confident private domestic investors driving the majority of deal flow.”

JAMES MACDONALD, SAVILLS RESEARCH



The office/business park sector recorded 23 en-bloc transactions totalling RMB13.3 billion, up 13% QoQ and 31% YoY.

• A total of 35 investment transactions were completed in Q2/2024, with a total transaction amount of RMB18.1 billion, down 1% QoQ and up 35% YoY.

• The office/business park sector was particularly active during the quarter, accounting for 74% of transactions. There were 23 deals recorded, totalling RMB13.29 billion, up 13% QoQ and 31% YoY. Most of the deals were concluded by domestic financial and insurance institution end-user buyers.

• Investment appetite for the residential leasing/serviced apartment sector subsided in the second quarter, with investors exploring more niche market opportunities, with several deals completed over the past year.

• Other key asset classes, including the retail, hotel, and industrial sectors, experienced a decline in transaction volumes given the lack of support from institutional buyers.

• High-quality office buildings in core locations remain attractive investment targets despite challenging economic conditions. This quarter, Zhong’an Insurance purchased two office buildings for self-use, from Rockefeller Group in Shanghai for a unit price of RMB 90,000 psm with a total price of RMB1.44 billion.

• Land transaction volume totalled RMB25.3 billion in Q2/2024, up 9% QoQ, with residential plots accounting for 80% of the total consideration.