“Despite the challenging economic environment, there are signs of increased activity in the investment market. This improvement is driven by the availability of more high-quality assets, continued monetary easing, and asset repricing.”

JAMES MACDONALD, SAVILLS RESEARCH



Market decline but rising expectations

• China-wide en-bloc transaction consideration provisionally totalled RMB295 bn in the 12 months to Sep 15, 2024, down 7.0% YoY.

• Office/business park recorded the largest decrease in transaction values, falling 34% YoY in the 12 months to Sep 15, bringing its share of transaction value to just 27% of the total, down from 38% a year ago.

• The hotel sector recorded the largest increase in transaction value, up 82% YoY in the 12 months to Sep 15. The retail sector also recorded a growth of 50% YoY during the same period.

• First-tier cities accounted for 56% of the transactions in the 12 months to Sep 15, 2024. Shenzhen saw the most significant decline in transaction volume, down 65% YoY, while Guangzhou saw a decline of 37% YoY. Shanghai and Beijing recorded growth of 4% and 18% YoY respectively.

• 7 new REITs were approved in Q3/2024, including three in the industrial asset sector, bringing the number of approved public REITs to 55.