“Beijing’s current en-bloc investment market has cooled down, with transaction volumes showing varying degrees of decline across various asset classes. However, with the implementation of supportive real estate policies to enhance the market confidence, it is expected that the market’s activity will pick up quickly.”

VINCENT LI, SAVILLS RESEARCH



Beijing’s investment market was flat

• The total transaction area of the first-hand strata-title office market reached 197,191 sqm, down 3.0% quarter-on-quarter (QoQ), with combined consideration of RMB8.31 billion, up 17.6% QoQ.

• The total transaction area of the first-hand strata-title retail market reached 208,166 sqm, marking a 60.4% QoQ increase. The total consideration registered RMB3.89 billion, up 13.9% QoQ.

• In Q3/2024, Beijing en-bloc investment market was quiet, with the quarterly consideration registering RMB4.95 billion, down 36% QoQ.

• In the first three quarters of 2024, the total transaction volume of en-bloc investment market reached RMB20.75 billion, down 22.0% year-on-year (YoY).

• Grade A office capital values registered an average of RMB68,225 psm in Q3/2024, and the gross yield dropped to 4.95%.

• A total of 13 land plots were transacted for RMB26.72 billion, of which seven plots were for residential, four for commercial and two for industrial.