According to international real estate advisor Savills, en-bloc sales transactions in Mainland China totalled RMB 76.8 billion (US$11.2 billion) in 2009, down 3.6 per cent compared with 2008.

Close to three quarters of the deals in 2009 (US$8.3 billion) were concluded in the second half of the year as investment activity, on the back of strong economic data and increasing interest from local buyers, picked up.

Of the deals tracked in 2009, 70 per cent involved properties located in the first tier cities of Shanghai, Beijing, Guangzhou & Shenzhen down from 79 per cent in 2008 as investors penetrate further into the nation’s hinterland and an increasing proportion of deals involve domestic investors. International investors, typically the seller in a number of these deals, sought to secure their investment returns by disposal at a perceived market high.

Albert Lau, Managing Director of Savills Shanghai comments: "For the 2010 en-bloc investment market, domestic companies are expected to play a more important role than ever. These include insurance companies, private and institutional local investors. As the China economy is expected to grow and perform stronger than the western countries, investment transactions will continue to increase from local and foreigner’s investors."

Randall Hall, CEO of Savills China says: "Savills has advised on more than RMB6.8 billion (US$ 10.03 billion) investment transactions in China mainland and Taiwan in 2009. We are proud to have provided our clients with the expertise to achieve successful results. This also reinforces Savills’ position as the leading consultant in the China market."

Mr. Hall added that in 2010, China’s first ever World Expo will take place in Shanghai. "The heavy volume of both international and domestic tourists will put China, and especially Shanghai, under the spot light and, subsequently, support further rises in property capital values in Shanghai."

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