Shanghai gives confidence to Chinese real estate investors
Shanghai gives confidence to Chinese real estate investors. According to industry reports, Shanghai is in a reliable position for China’s real estate investments. More than half of Shanghai’s trading volume was recorded from Chinese investments.
Global real estate consultancy According to JLL’s report, real estate investments in Shanghai have been in the past year. billion dollars. The Chinese accounted for about half of these investments. The transaction value of large real estate investments reached US $ million.
“The central government’s de-leveraging campaign limited the overall financial environment over 2018, tightening domestic financing channels and affecting investors’ financing capacity,” said Jim Yip, head of capital markets for JLL China and East China. “The investment sales market did gain momentum at the end of the year despite a soft start, with foreign investors being a highlight in the market.”
In a different report published by Savills, the provider of international real estate agencies, it was said that more opportunities were offered to foreign investors because there was not enough domestic investment in Shanghai.
“International investors and developers accounted for around 59 percent of total consideration in Shanghai last year, with a strong appetite for big-scale mixed-use projects and development sites as they usually boast more capital reserve for mega deals,” said Chester Zhang, associate director at Savills China research. “In addition, the local property investment market continued to see interest in project conversion, with a focus on buying underperformed retail projects with an intention to convert them into residential and co-working spaces for leasing purposes.”
According to the Savills report, in Shanghai last year, 6.8 million yuan of retail property was sold. This figure is 3 times more than in 2017.
Sevdenur Demir / realestatecoulisse.com
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