“Investor caution and divergent pricing expectations continue to define Shanghai’s commercial property market in Q2/2025. While private capital remains active in small to mid-sized assets, institutional and foreign players are largely on the sidelines. The market reflects a broader recalibration, where liquidity is available but only selectively deployed, favouring resilient sectors and opportunistic strategies.”

JAMES MACDONALD, SAVILLS RESEARCH



Smaller Transactions Dominate the Market

• A total of 13 transactions were concluded in Q2/2025, with a combined consideration of RMB4.6 billion, down 66% QoQ and 74% YoY.

• Market activity declined notably, with the transaction landscape still dominated by small- to mid-sized deals led by private investors.

• All asset classes recorded transaction volume contractions on both a QoQ and YoY basis. Office transactions saw the sharpest fall, down 77% YoY.

• Foreign investors remained cautious, with no transactions involving overseas buyers registered during the quarter.

• Listed gaming company Century Huatong acquired the Shanghai Technology Innovation Tower – an office project above L City (陆悦天地) – from Lujiazui Group for RMB1 billion. The property will serve as the new headquarters for its subsidiary, Shengqu Games (formerly Shanda Games).