“The market is no longer defined by broad-based growth, but by selective convictions. Investors are focusing on assets with resilient income, clear pricing, and long-term relevance in an increasingly challenging environment.”

JAMES MACDONALD, SAVILLS RESEARCH



Navigating Structural Transition

• In the 12 months to 15 June 2025, China’s en-bloc investment market recorded provisional transaction volumes of RMB204.9 billion, representing a 36.0% YoY decline—the sharpest fall in recent years.

• Hotel assets saw the most substantial drop, with volumes down 61.1% YoY. Their share of total transactions declined from 10.7% to 6.5%.

• All major sectors recorded varying degrees of YoY contraction: industrial (–55.5%), multifamily residential (–52.3%), retail (–14.3%), and office (–14.2%).

• First-tier cities accounted for 57% of total transaction value. All except Shenzhen recorded sharp declines: Guangzhou (–47%), Shanghai (–44%), and Beijing (–43%). In contrast, Shenzhen saw a 65% YoY increase, driven by a marked rebound in retail and office deals.

• Public REITs continued to gain traction, with 11 new listings in H1/2025 alone, bringing the total to 68. This trend is helping to diversify funding sources and establish clearer valuation benchmarks.