“The market is moving away from growth expectations and towards income certainty. In this environment, value is no longer defined by potential, but by an asset’s ability to generate stable and sustainable cash flow over time.” —— James Macdonald, RESEARCH



Rebalancing Capital, Reframing Value

•China’s en-bloc investment market recorded RMB218.1 billion in transactions over the past 12 months (to 15 March 2026), down 15.1% YoY.

•Office assets remain under pressure from elevated supply and softer fundamentals, with transaction volumes down 35.7% YoY. Self-use demand has not been sufficient to offset the decline in investment activity.

•Rental housing transactions rose 8.3% YoY. While operational performance is facing short-term pressure, investment interest continues to reflect confidence in the sector’s longer-term resilience.

•Regional divergence is becoming more pronounced. First-tier cities have seen a sharp slowdown due to pricing gaps and reduced purchasing power among key buyers, while non-first-tier cities are attracting capital on the back of more accessible pricing, lower entry costs, and stronger industrial support.

•The importance of location alone is gradually diminishing. For retail assets, operational capability and the ability to attract and retain consumers are becoming increasingly important in determining value.

•The REITs market continues to expand and diversify, with underlying assets extending into sectors such as outlet malls and community retail. Operational strength is increasingly central to pricing.