Real estate off to a good start in 2019

Source: Xinhua | 2019-04-19

Shanghai’s real estate investment market is off to a vibrant start in 2019 with transactions of major deals exceeding 90 billion yuan (US$13.38 billion) in the first quarter, property services provider Cushman & Wakefield said in its latest report.

Major property deals totaled 95.9 billion yuan, compared with 117.2 billion yuan in deals settled for full-year 2018.

“For three consecutive years, Shanghai saw en-bloc real estate investment exceed the 100-billion-yuan threshold, and the momentum continued to extend in the first three months of this year with even more notable strength,” said Alvin Yip, Cushman & Wakefield’s China president of capital markets.

“Looking forward, foreign investors will certainly maintain their appetite for the local market whereas sentiment among their domestic counterparts will also pick up gradually.”

Mixed-use developments were the most sought-after — 68 percent of the total. Office buildings trailed with a 29 percent share.

Looking ahead, Cushman & Wakefield advises investors to focus on core assets with stable cash flow, high-quality assets in decentralized areas and urban renovation projects.