Shanghai's real estate investment market saw en bloc deals in 2016 more than doubled in value from a year ago, with domestic buyers being dominant investors in local properties, global real estate service provider DTZ/Cushman & Wakefield said yesterday.
More than 130 billion yuan (.7 billion) of major real estate investment deals, excluding land transactions and confined to property acquisitions worth over million each, have been sealed in the city so far this year, up from 60 billion yuan in 2015.
"By property types, office towers, retail malls as well as serviced apartments were the most favored assets among investors over the past year," said Jim Yip, managing director of investment and advisory services at DTZ/Cushman & Wakefield China. "Notably, domestic buyers played a dominant role in the local real estate investment market this year with more than 95 percent of the total value being sealed by them, mostly financial and insurance companies."
Office buildings, comprising fully-leased office towers in central business districts, old offices or hotels that will be wholly or partly renovated into high-quality offices, as well as those in emerging areas such as the Greater Hongqiao area and the Northern Bund area, accounted for more than 70 percent of the total deals.
It was followed by retail mall deals, accounting for 15 percent of the total value.