Shanghai’s real estate investment market is off to a vibrant start in 2019 with transactions of major deals exceeding 90 billion yuan (US$13.38 billion) in the first quarter, property services provider Cushman & Wakefield said in a latest report.
Between January and March, major property deals totaled 95.9 billion yuan in the city, compared with 117.2 billion yuan in deals accomplished in the whole year of 2018, according to Cushman & Wakefield data.
“For three consecutive years, Shanghai saw en-bloc real estate investment exceed the 100-billion-yuan threshold and the momentum continued to extend in the first three months of this year with even more notable strength,” said Alvin Yip, Cushman & Wakefield’s China president of capital markets. “Looking forward, foreign investors will certainly maintain their appetite in the local market whereas sentiment among their domestic counterparts will also pick up gradually.”
By asset type, mixed-use developments stood out as the most sought-after properties among investors during the three-month period, accounting for 68 percent of the total. Office buildings trailed with a 29-percent share.
For future opportunities, Cushman & Wakefield advised investors to pay close attention to core assets with stable cash flow, high-quality assets in decentralized areas as well as urban renovation projects, among others.