“The investment market remains challenging as we enter the second half of 2024. End users are sustaining some deal flow in leading cities, but further price adjustments are necessary to attract institutional capital back into core asset classes.”

JAMES MACDONALD, SAVILLS RESEARCH

Institutional investors explore add-value opportunities in the multifamily, hotel, and retail sectors, seeking unique angles or best-in-class execution to stand out.

• China-wide en-bloc transaction consideration provisionally totalled RMB280 bn in the 12 months to June 15, 2024, down 11.0% YoY.

• Office/business park transaction values fell 45% YoY in the 12 months to June 15, bringing its share of transaction value to just 27% of the total, down from 44% a year ago. Industrial /logistics transaction value fell 16% YoY, with its share of deals now also accounting for 27%.

• The hotel sector recorded the largest increase in transaction value, up 79% YoY in the 12 months to June 15. This was followed by the residential/serviced apartment sector, up 47.5%, and the retail sector up 35% YoY.

• First-tier cities accounted for 57% of the transactions in the 12 months to June 15, 2024. Shenzhen saw the most significant decline in transaction volume, down 77% YoY, while Shanghai saw a decline of 8% YoY. Beijing and Guangzhou recorded 32% and 42% of growth YoY respectively.

• 12 new REITs were approved in Q2/2024, bringing the number of approved public REITs to 48, mainly focused on business park, retail, and industrial assets.