SHANGHAI’S real estate investment and development prospects in the Asia-Pacific region for next year look attractive as international capital remains keen to invest in the Chinese mainland especially in first-tier cities, a report released yesterday said.
The city was ranked sixth for investment opportunities and seventh for development prospects in 2017, up from this year’s ninth and 10th spots, respectively, the Emerging Trends in Real Estate Asia Pacific 2017 report by the Urban Land Institute and PricewaterhouseCoopers showed.
The report interviewed over 600 real estate professionals, including investors, developers, property firm representatives, lenders, brokers and consultants, in 22 cities across the region.
Shanghai is a core market for international investors, or a regional gateway with less exposure to short-term cycles, according to the report. Shenzhen, meanwhile, jumped to fifth for both real estate investment and development prospects, ranking the highest among all Chinese cities.
Prices “in residential markets in China’s first-tier cities remain high and so are the commercial property prices,” said Sally Sun, a PwC China assurance partner.
Residential prices have soared above 40 percent year on year in the first three quarters of this year in Shenzhen, the fastest in the world.
Meanwhile, office rents have been on a steady upward trajectory for years and are now double their level of 2009, according to the report.
Guangzhou and Beijing rank 10th and 11th for investment prospects, and 13th and eighth for development opportunities.
--source from Shanghai Daily
