OFFICE buildings continued to be favored among en bloc real estate investment deals totaling 13.5 billion yuan (US$2 billion) in Beijing real estate deals in the first three months of this year, property adviser Savills said in a report released yesterday.
The amount was equivalent to the average quarterly value registered in the city over the past two years, Savills added.
Office buildings, which took up 88 percent of the total transaction value, remained the most favored property type among investors, one third of whom were end-users, Savills data showed.
“Domestic investors continued to play a vibrant role in Shanghai’s real estate investment market in the first quarter of this year with about 69 percent of the total value
being sealed by them,” said Chester Zhang, associate director at Savills China Research. “Foreign players remained interested in office towers in core CBD areas with potential for growth in capital value.”
But the deal amount saw a nearly 70 percent dive quarter on quarter, due to a record-high transaction volume posted in the fourth quarter of 2016.
“The first quarter’s slowdown was attributed in part to the limited number of quality assets available for sale in the market, especially following a buying spree in the previous three-month period,” said Joe Zhou, head of research for JLL Beijing.
He also cited sellers’ firm stance on price, which left buyers with limited discounts.
--source from Shanghai Daily