Residential and CRE Investments in GBA Gain Traction

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Residential property prices rose across the board

New economy assets such as industrial, logistics and data centres on the rise

Transactions In 1H 2022 Amounted to RMB24 Billion, 5-Year Record High by Investment Share in Greater China

  • In 1H 2022, the overall sales figure for the primary and secondary residential market demonstrated a year-on-year downturn. Nevertheless, the majority of the transactions were premium and luxury properties, pushing the overall house price benchmark upwards. The total sales figure for the year is expected to rise by 5% to 10%.
  • The CRE investment market in the Greater Bay Area (GBA) recorded a total transaction value of RMB24 billion, accounting for about 32% of the total large size deals (>100M RMB) in China, hitting a five-year record high by investment share.
  • Investment in new economy assets such as industrial, logistics, and data centres has increased significantly and started to dominate the market. In particular, transactions of industrial logistics in Shenzhen made up 73% of the GBA market, a six-fold rise on the same period last year.
  • Investment transaction activity in 1H 2022 was dominated by domestic investors at RMB22.2 billion, demonstrating optimism in investment appetite.
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HONG KONG SAR – Media OutReach – 28 July 2022 – Global real estate services firm Cushman & Wakefield today published its Greater Bay Area Property Investment Market Review and Outlook 1H 2022. In 1H 2022, the residential market in the Greater Bay Area (GBA) demonstrated a price increase, but coupled with a fall in the number of transactions. The overall sales figure has dropped by around 45% y-o-y, yet the price has shown a general upward trend. With the development of GBA cities becoming more mature and as the transportation network completes, demand in logistics from Guangzhou, Shenzhen and Dongguan have expanded to other GBA cities, resulting in increased investment activities in new economy assets such as industrial, logistics, industrial parks, and data centers. However, due to the continued impact of the pandemic on corporate development and retail consumption, investors have become more cautious about conventional offices and shopping centres, while self-use-driven purposes covered 90% of the total investment share.

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