“The investment market is showing signs of increased activity, driven by the availability of more high-quality assets, ongoing monetary easing, and asset repricing, despite the challenging economic conditions.”

JAMES MACDONALD, SAVILLS RESEARCH



Potential Turning Points Ahead

• China-wide en-bloc transactions provisionally totalled RMB249 billion in the 12 months to 15 December 2024, down 25.1% YoY.

• The residential sector saw the steepest decline, with transaction volumes falling 65.5% YoY in the 12 months to 15 December 2024, bringing its share to 7% of the total from 16%. Besides, the office, industrial and hotel sectors also recorded YoY declines of 37.6%, 19% and 16%, respectively.

• The retail sector was the only category to record growth, with transaction volumes rising 27.2% YoY in the 12 months to 15 December 2024.

• First-tier cities accounted for 54% of transactions in the 12 months to 15 December 2024. Shenzhen experienced the largest decline, with volumes down 51% YoY, while Guangzhou, Shanghai, and Beijing saw drops of 37%, 30%, and 18%, respectively.

• C-REIT issuance accelerated in H2/2024, with eight new REITs approved in Q4/2024, including the first agricultural market REIT, bringing the total approved REITs to 63.