Shanghai Investment

Asian Cities

1H 2017

 

Overview
Relaxed monetary policy and limited investment opportunities have brought an influx of capital searching for a safe haven into Shanghai’s real estate market in recent years. High demand for core assets as well as inflated land prices have also contributed to the growth of real estate asset prices further compressing yields.

The city’s investment market recorded one of its most active years in 2016, with 35 significant sales transactions concluded for a total consideration of RMB72.1 billion, up 34% year-on-year (YoY). The landmark deal for the year was the sale of Century Link by Cheung Kong for approximately RMB20 billion. Acquisitions for investment purposes continue to be focused on prime locations, namely Huaihai (M) Road, Lujiazui and Nanjing (W) Road, where rents are expected to remain the most resilient to market pressures. Emerging markets such as North Bund and the Hongqiao Transportation Hub (HTH) have also attracted significant demand from domestic end-users.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square, 23/F

+852 2842 4573

 

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