Home » Business » Real Estate
Sentiment fuels property deals
By Cao Qian |
October 21, 2009, Wednesday
|
Print Edition
Print Edition
THE continuing improvement in investment sentiment has more than tripled the total value of property transactions in Shanghai in the third quarter of the year, according to real estate services firm DTZ.
Forty-four major real estate deals were completed in the city between July and September, a quarter-on-quarter increase of 38 percent, according to DTZ. The deals were worth a combined 39.8 billion yuan (US$5.83 billion), a 241 percent increase on quarter.
Transactions involving more than US$10 million each are defined as major deals by the company.
"Residential and mixed-use transactions dominated the market during the past quarter with 17 and 12 major transactions being secured in each sector," said Shaun Brodie, head of research for DTZ's East China operations. "This reflects a quarter-on-quarter growth of 21 percent and 20 percent."
Transactions in residential properties amounted to 18.5 billion yuan and mixed-use properties totaled 10 billion yuan during the three-month period.
While domestic investors were the most active players in the local market, the third quarter also saw the first building acquisition by an overseas buyer this year.
Capital Strategic Investment of Hong Kong paid 480 million yuan for the 11,000-square-meter In Point shopping center on Wujiang Road.
"Due to low vacancy rates and the potential for rental growth, prime retail projects are highly sought after by overseas and domestic investors," said Greg Hyland, head of investment for Jones Lang LaSalle Shanghai. "Therefore, the bidding process for the limited number of prime retail projects for sale is more competitive."
Forty-four major real estate deals were completed in the city between July and September, a quarter-on-quarter increase of 38 percent, according to DTZ. The deals were worth a combined 39.8 billion yuan (US$5.83 billion), a 241 percent increase on quarter.
Transactions involving more than US$10 million each are defined as major deals by the company.
"Residential and mixed-use transactions dominated the market during the past quarter with 17 and 12 major transactions being secured in each sector," said Shaun Brodie, head of research for DTZ's East China operations. "This reflects a quarter-on-quarter growth of 21 percent and 20 percent."
Transactions in residential properties amounted to 18.5 billion yuan and mixed-use properties totaled 10 billion yuan during the three-month period.
While domestic investors were the most active players in the local market, the third quarter also saw the first building acquisition by an overseas buyer this year.
Capital Strategic Investment of Hong Kong paid 480 million yuan for the 11,000-square-meter In Point shopping center on Wujiang Road.
"Due to low vacancy rates and the potential for rental growth, prime retail projects are highly sought after by overseas and domestic investors," said Greg Hyland, head of investment for Jones Lang LaSalle Shanghai. "Therefore, the bidding process for the limited number of prime retail projects for sale is more competitive."
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