“The investment market is beginning to show signs of re-engagement—not through broad-based recovery, but through selective activity focused on high-quality assets, underpinned by policy easing and clearer pricing signals.”

JAMES MACDONALD, SAVILLS RESEARCH


Ongoing Market Adjustment and Emerging Structural Trends
• China-wide en-bloc transactions provisionally totalled RMB223 billion in the 12 months to 15 March 2025, reflecting a 31.0% YoY decline, which was partly due to the significant decline in transactions in Q1/2025.

• The residential sector remained the most pressured, with volumes down 61.1% YoY, reducing its share of total transactions from 14% to 8%.

• Other sectors also saw varying degrees of decline: industrial (–55.0%), hotel (–20.4%), office (–13.3%), and retail (–7.0%).

• First-tier cities accounted for 57% of transaction volumes. Guangzhou posted the steepest fall at –56% YoY, followed by Shanghai (–40%), Shenzhen (–5%), and Beijing (–2%).

• C-REIT activity gained momentum, with seven new listings in Q1/2025 alone, bringing the total to 64. This trend is helping to diversify funding channels and sets clearer benchmarks for asset valuation.