Affected by growing difficulty in domestic sourcing of investment capital and slowed-down economic performance, total investment volume dropped 12.5% quarter-on-quarter (q-o-q) to reach US$24.94bn.
Decline in activity within the land transaction market in the quarter was counteracted by surge in interest in acquisition of prime commercial properties. While total land transactions dropped 15.7% q-o-q, total sales of completed properties rose by 47.9% q-o-q.
Office building transactions increased considerably, as offices continue to be one of favoured asset class for investors. Several significant building deals in the first-tier cities of Shanghai and Beijing were concluded in Q2.
Within the period under review, the portion of domestic investment dropped as a percentage of total investment volume, while, overseas investment in China increased with the bulk of investment coming from Asia regional PE funds and developers.
Source : DTZ (Groupe UGL)