Colliers | China | Both domestic and international investors take focus on China’s commercial real estate market
Summary & overview
As the effects of Covid-19 fade, the world’s economy is rebounding from previous falls, especially in the Asia-Pacific region. According to Oxford Economics’ 28 July 2021 forecast, China’s economy is expected to yield strong growth of 8.4% this year.
Through this investment survey, Colliers communicates insights into future investment interests and trends. Analyzing the survey result, 74% of the respondents are willing to increase their investments in China, demonstrating confidence in China's commercial real estate markets in the past three years.
• Benefiting from China’s macroeconomic fundamentals and supporting policies in the government’s 14th Five-Year Plan, investors hold a strong positive outlook for China’s commercial real estate investments in its first-tier cities (especially Shanghai, Shenzhen) and non-first-tier cities such as Hangzhou, Chengdu and Suzhou.
• As the commercial real estate market gradually recovers, foreign institutional investors and insurance companies are increasingly proactive in seeking and investing in high-quality assets to obtain satisfactory returns.
• The cold chain, senior living, and medical & beauty sectors account for a significant majority of investors’ favorite a alternative assets. Notably, we expect cold chain and senior living to experience a period of rapid growth. Investors should plan now and act in advance to capture the opportunities.
• While promising growth opportunities exist, we expect investors to put more emphasis on the stability of tenant’s leasing terms, ESG and the evolution of the market, factors allowing them to be resilient against future market challenges.