"As pricing adjusts and ownership transitions from financial investors to long-term owners, new investment opportunities are emerging through repositioning, urban regeneration and active asset management." – James Macdonald, Savills Research.



Ownership Shifts, Opportunities Emerge

• Shanghai recorded 19 en-bloc transactions in Q2/2026, with a combined value of RMB6.13 billion, up 24% YoY, indicating a modest recovery in investment activity despite overall volumes remaining subdued. • State-owned enterprises, listed companies and industrial groups continued to dominate acquisitions, while private equity and real estate funds remained the principal sellers, reflecting the ongoing transfer of prime assets to long-term owners. • Sasseur's (砂之船) acquisition of the former Jinsheng Home Furnishings (金盛家居) project highlights growing investor interest in repositioning underperforming commercial assets through redevelopment and active asset management. • Retail and hotel investment activity increased as improving pricing and stable income prospects attracted greater interest from corporate buyers, private investors and long-term capital. • No en-bloc apartment transactions were completed during the quarter. Following several active quarters, many investors are focused on integrating recently acquired assets, while the supply of stabilized investment-grade apartment projects remains limited. • Land market activity remained highly selective, with competition concentrated on prime sites in core districts, while suburban sites generally traded at or near reserve prices.