More block trades are expected in Beijing's property investment market due to financing pressure on some project holders, industry experts said.
"The volume of assets for trade will increase as some project holders respond to the grim financing environment," said Winter Yan, associate director of Capital Markets and Investment Services at Colliers International.
According to Yan, office building, together with commercial and long-term rental apartment, will continue to be investment hot spot in the future. As policy restriction will make investors more cautious, property with stable cash flow will become investors' favorite choice, he said.
In 2018, there were overall 32 block trades recorded in Beijing's property investment market, with the total transaction area increasing 35 percent year-on-year to 1.63 square kilometers and overall transaction volume rising 27 percent year-on-year to 55.5 billion yuan ($8.19 billion), according to statistics from Collier International.
According to figures from Savills, the market was extremely active in the fourth quarter of 2018 as 7 recorded block trades totaling 29.42 billion yuan reached the highest level of a single quarter in the past decade. "Both foreign and domestic investors will remain interested and optimistic about Beijing's property stock in the future," said Cao Chunji, senior director of investment at Savills.
"They will make investment plans to target specific domain and complete their investment layout."
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