Investor interest in the Shanghai office market stayed strong in the second quarter despite high prices and lower transaction volume, according to global real estate services provider JLL.
En-bloc real estate investment deals covering all property types in Q2 totaled 19.4 billion yuan (.85 billion), a decrease of 2.8 percent from the first quarter, but a year-on-year surge of 47.2 percent, JLL said in a report yesterday.
Office buildings remained most sought-after, accounting for 92.1 percent of the total. Retail space trailed with 3.1 percent and industrial properties with 2.1 percent.
"Limited availability of quality assets for sale, especially after the frantic buying spree in the fourth quarter of last year, was one of the key reasons behind last quarter's slowdown," said Johnny Shao, the head of capital markets for Shanghai and East China at JLL. Foreign investors accounted for two of the largest Q2 transactions.