Savills - China Investment, July 2023

According to a report by Savills, the total value of en-bloc transactions in China decreased by 23% in the 12 months leading up to June 15, 2023, reaching RMB253 billion. The residential sector was the only asset class that showed year-on-year growth, with transaction values increasing by 76%. However, the office, retail, and industrial/logistics sectors experienced decreases of 25%, 25%, and 26% respectively. Office transactions accounted for the largest share of the total transaction value at 48%, while residential transactions reached the highest level in recent years at 8% of the total value. Among the transactions, first-tier cities contributed to 59% of the transaction value. Notably, Shenzhen witnessed a significant increase in transaction volumes, rising by 76%. On the other hand, Shanghai, Beijing, and Guangzhou saw declines of 43%, 32%, and 26% respectively. The second quarter of 2023 also marked the official listing of two China Real Estate Investment Trusts (C-REITs), bringing the total number of listed C-REITs on the Shanghai and Shenzhen stock exchanges to 29 by June 15, 2023.