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HONG KONG, CHINA
–
Media OutReach
–
October 29
2018 – According to the last Greater China Report on Express Capital Markets
of
Cushman & Wakefield
, world leader in real estate services, commercial real estate
investment demand from foreign participants rebounded in the third quarter,
particularly in Tier 1 cities despite a general relaxation of
commercial property investments in mainland China in the 12
month.
The increase in the share of foreign investment in China occurred in the middle of a
difficult credit environment for domestic investors. Shanghai
was the main target of foreign capital, registering 23.5 RMB
billions of real estate investments during the first three quarters of
2018, up 83% y-y-y. Industrial Properties in Hong Kong
attracted increased investor demand given the city's willingness
for industrial revitalization. In Taipei, investments were made by
office and industrial office (I / O) offers, especially older office
buildings in the central areas of the city with a stable income and
redevelopment potential.
Francis Li, International Director and Head of Capital Markets,
China enlarged to Cushman & Wakefield
, said: "Because of the low yields that prevail in China's core / core markets more,
asset classes, buyers continue to look for value-added
investments in Tier 1 cities. These strategies include
acquisition of underperforming assets for upgrade or conversion.
Examples of this could include office retail uses (especially
co-working) and grade B office to rented apartments. In addition,
Continuous improvement of intra and interurban connectivity
attracts more capital to target real estate assets in emerging CBDs
in level 1 cities and some major tier 2 cities. "
James Shepherd, General Manager of Research, Greater China at
Cushman & Wakefield
, said: "Investments in mainland China should
in the next 12 months. However, given the prevailing market tightening
situation of loans, the new supply of offices should fall
back, while end-user demand remains strong. Global vacancy
exchange rates in China, especially in tier 2 cities, have tightened and
this seems likely to continue until 2019. For investors
strong asset management capacity and access to debt, we expect
a commercial real estate investment more and more attractive
environment for office buildings or development projects in the periphery
areas of Tier 1 cities or core areas of Tier 2 cities. "
Catherine Chen, Head of Financial Markets Forecasting and Research,
China enlarged to Cushman & Wakefield
, said: "Government initiatives, including the Great Bay area,
Belt & Road and urban renewal programs should continue
stimulate the growth of commercial real estate investments in China. In
In addition, the strong expansion of the services sector, driven by
The rise of Chinese enterprises should continue to support the offices
occupant demand, offering promising investment prospects
quality assets in China's major markets. "
The report provides information on the following topical topics:
The express railway opens up new prospects in Guangzhou,
Shenzhen and Hong Kong
: Expected Opening of the Express Railroad
September marks an exciting step in the ongoing development of
the Great Bay Area (GBA). Three sites should harvest
huge benefits in particular: the areas surrounding Shenzhen
Futian Station, Guangzhou South Station and West Hong Kong
Kowloon Station.
Other investment opportunities in the Greater Bay Area (GBA)
: From a regional point of view, each of the cities under the GBA
cadre have their own strengths. For example, secondary cities
Foshan, Zhuhai, Dongguan and Zhongshan will become the regional core
cities, while Huizhou, Zhaoqing and Jiangmen are likely to become
logistics hubs given their geographical advantages.
Asset Management for Conversion Projects
: As investors seek new ways to make the most of Chinese reality
real estate market, property conversions are an attractive prospect. A
A notable example of this is the reuse of the
Shanghai JC Mandarin Hotel in a Modern Class A Office Tower.
program of extensive work, the current conversion involves
important structural design and engineering, in addition to
numerous government authorizations.
In addition, the report identifies the main investment themes in the Far North.
The main investment markets of China:
Pekin
: The Beijing investment market rebounded in the third quarter, following
cooling until the first half of 2018. A total of 11.9 RMB
billions of investments changed hands during the quarter, up
13% y-o-y. E-commerce companies have become more and more active,
JD's acquisition of RMB 2.0 billion of the 68,000 sq. M.
Beijing Jade Hotel.
Shanghai
: Shanghai investment market recorded 17 combined transactions
consideration of 18.09 billion yuan for the quarter. Activity by
foreign investors jumped in the face of growing challenges
by domestic investors, including stringent deleveraging requirements
and fewer funding channels. Notable foreign investment included
Brookfield acquires Jinqiao and Mall Jiading shopping centers for RMB 1.38
billion and RMB560 million, respectively.
Guangzhou
: In the first three quarters of 2018, Guangzhou investment
market recorded a total volume of 12 billion RMB of transactions, up
9.8% compared to the same period of 9 months last year. Office
properties remained the favored asset class in Guangzhou. notable
transactions included the purchase by a federal institution of
Building A2, Greenland Central Plaza for 1.2 billion RMB.
Shenzhen
: Shenzhen recorded an investment of 3.9 billion RMB in the third quarter,
10.7 billion RMB during the first three quarters of
2018. Homeowner occupants, traditionally one of the most
active buyers of Shenzhen office assets, remained cautious
this year, given the financial tightening. The purchase of four floors
at the turn of the International Chamber of Commerce of the CBD Futian by a Hong
Kong investor has marked the largest office transaction in the
submarket so far this year.
Hong Kong
: Despite trade tensions between the United States and China, investment in
Hong Kong's industrial market jumped to HK $ 6.71 billion in the third quarter,
exceeding the average investment quarterly historical five-year
89% level. Decrease in industrial inventories and potential
reactivation of the government industrial revitalization program
contributed to the continued interest of investors for the block industrial industry
buildings.
Taiwan
: The market for commercial real estate investment in Taiwan registered $ 9.6 billion
billions of dollars in trading volume in the third quarter. The investment was led by the office
and industrial office offers (I / O). Most of the older office business involved
office buildings in central neighborhoods of the city with stable income
and potential for redevelopment.
Click on right here
to see the full report.
Cushman & Wakefield (NYSE: CWK) is a world leader in real estate
service company that offers exceptional value by putting ideas
action for occupants and property owners. Cushman &
Wakefield is one of the largest real estate services companies with
48,000 employees in approximately 400 offices and 70 countries.
In Greater China, 20 offices serve local offices.
market. The company has won four of the best Euromoney awards
Survey 2017 and 2018 in categories of overall, agency
Rental / sale, evaluation and research in China. In 2017, the company
had revenues of $ 6.9 billion on all basic services related to real estate,
facilities and project management, leasing, capital markets,
consulting and other services. To learn more, visit www.cushmanwakefield.com.hk
or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china
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