“Despite ongoing challenges, the government has increased policy support, signalling a more unified approach to economic issues. This shift is expected to bring stability to the market, create new opportunities, and act as a catalyst for recovery, even amid uncertainty.”

JAMES MACDONALD, SAVILLS RESEARCH



Transaction Activity in the Rental Apartment Sector Picks Up

• 24 transactions were completed in Q4/2024, totalling RMB 17.7 billion. This represents a 30% increase QoQ, though it is a 19% decrease YoY.

• Activity in Shanghai's investment market dipped during the quarter. However, large mixed-use deals contributed to the growth in total transaction volume.

• Transactions in the office and business park sector continued to decline this quarter, with waning institutional investor interest. Large deals remained limited.

• Retail, hotel, and industrial sectors saw reduced market activity, with transaction volumes primarily supported by smaller deals conducted by individual buyers. No institutional buyers participated during the quarter.

• Leading developers continued to pursue asset-light strategies amid revenue pressures. In Q4, Shui On introduced a new investor, China Life, to its two mixed-use community projects, Yangpu Central and KIC. These projects are operated in partnership with Yangpu state-owned capital.