Advanced Search

Related News

Home » Business

Real estate deals moderate in Q1

By Cherry Cao | April 26, 2016, Tuesday | Online Edition

REAL estate transaction volumes in China's mainland rose 10 percent from a year earlier to US$2.8 billion in the first three months of 2016 but fell significantly lower from a record fourth quarter of 2015, partly due to a lack of willing sellers as well as an increasingly polarized investment market between first and second-tier cities, international property advisor JLL said today.

"The large price gap between buyers' and sellers' expectation resulted in a scarcity of assets," said Anthony Couse, head of capital markets for JLL China. "Institutional investors will continue to seek core stabilized assets in major cities, which are scarce to come by given strong rental growth and after a record year of investment in 2015."

There may be more diversity of transactions as opportunistic investors may likely to look for assets in other asset classes or distressed assets in secondary markets, he added.

Investment activity in Hong Kong, meanwhile, more than doubled year on year to US$2.9 billion in the first quarter on the back of two major transactions. Investment appetite by Chinese mainland investors showed no signs of abating after setting record transaction pricing last year. China Everbright, for instance, bought Dah Sing Financial Centre for about US$1.3 billion.

Regionally, real estate transaction volumes in Asia Pacific fell 5 percent year over year in the first quarter of 2016 to US$23.7 billion as weakness in Japan outweighed gains in Hong Kong, Australia and South Korea, according to JLL’s latest global capital flows data.

Volumes in Japan, the region’s biggest market, totaled US$9.6 billion, a year-on-year drop of 26 percent but a quarter-on-quarter surge of 65 percent.

Something also worth noticing is that Asian investors seemed to prefer markets closer to home, probably in light of global economic uncertainty. Intra-regional buyer transaction volume rose to US$4 billion in the first three months of this year from US$1.1 billion the same period a year ago.

Business


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend