“The current cycle is testing investors’ discipline and ingenuity. Value is no longer about timing the market but about transforming assets and capturing long-term relevance.”

JAMES MACDONALD, SAVILLS RESEARCH



Fewer Transactions, More Portfolios: A Market in Transition

• In the 12 months to 15 September 2025, China’s en-bloc investment market recorded provisional transaction volumes of RMB212.7 billion, representing a 28.9% year-on-year (YoY) decline.

• Retail assets saw the sharpest contraction, with volumes falling 40.7% YoY and their share of total transactions decreasing from 25% to 21%.

• All major sectors recorded YoY declines: industrial (–39.6%), multifamily residential (–31.1%), hotel (–16.6%), and office (–13.3%).

• The share of transaction volume in first-tier cities fell from 58% to 51%. Shenzhen was the only city to record growth, with a 140% YoY increase driven by several large transactions.

• China’s REITs market continued to expand rapidly, supported by ongoing policy measures. By Q3 2025, 78 publicly offered REITs had been approved, with new regulations refining and supporting market scaling and follow-on offerings.