“The commercial real estate market is adapting to a new environment, with increased policy support providing a foundation for stability. While challenges remain, there are emerging opportunities for long-term growth, particularly for investors seeking diversification in uncertain times.”

JAMES MACDONALD, SAVILLS RESEARCH



Office and Retail Sector Activity Picks Up in Q1/2025

• A total of 18 transactions were concluded in Q1/2025, amounting to RMB13.7 billion, representing a 23% decline QoQ and a 25% fall YoY.

• Market activity edged down, with transactions mainly involving smaller assets acquired by private investors.

• The office and business park sectors experienced significant value increases QoQ and YoY, largely dependent on the in-process acquisition of One Museum Place announced by China Post Insurance.

• Domestic investors remained dominant, with only one business park transaction involving a foreign buyer.

• The long-stalled Temple Square mall was sold to a private buyer for RMB1.2 billion. It is reportedly being redeveloped into a cultural experience centre, potentially setting a new precedent for repositioning underperforming assets in core business areas.