New economy assets such as prime industrial parks, logistics facilities and medical centres remain attractive
- The overall Greater Bay Area (GBA) primary residential market sales performance dropped noticeably in 2022. Secondary market home prices remained under pressure, although primary home prices in some cities were lifted due to a focus on high-end projects. Recovery is expected in the GBA housing market along with the mainland-Hong Kong border reopening.
- Total GBA CRE investment volume recorded RMB64.9 billion in 2022, taking an approximately 29% share of the large-size deals (>RMB 100 million) in China, with Shenzhen surpassing Beijing as the second-highest ranked city by investment volume.
- Investment interest in new economy assets such as industrial and logistics facilities and data centres has picked up noticeably, with the rise of China’s Real Estate Investment Trusts (C-REITs) also propelling greater investment appetite for industrial parks, biomedical facilities, and logistics assets.
HONG KONG SAR and BOSTON – Media OutReach – 11 January 2023 – Global real estate services firm Cushman & Wakefield today published its Greater Bay Area Residential and Investment Market 2022 Review and 2023 Outlook. The GBA’s residential market slowed noticeably in 2022 in the wake of the pandemic, with overall transaction numbers and secondary home prices both dropping. In contrast, transactions in the CRE market held up well. The relaxation of quarantine measures in the mainland, coupled with the border reopening, should bring greater positivity to overall market sentiment in 2023, and support a pick-up in transactions in both residential and CRE investment markets.
