Page 322 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
trillion yuan, increased 31.4 percent, and the pace of trillion in 2016, the second highest in the world, the
increase expanded by 4.5 percentage points. The sale of country’s Transaction Activeness Ratio or TAR remains
floor space of commercial buildings in western region relatively low. The index refers to the ratio of annual
amounted to 187.46 million square meters, increased investment transactions to investable real estate
21.2 percent year-on-year up by 0.2 percentage points value, which can be quoted as an indicator of market
over the first five months in 2017. The amount of sales liquidity. Along with other BRICS countries, China is
stood at 1.1 trillion yuan, went up by 37.7 percent, the still in the low-liquidity phase. With its investment
growth rate went up by 1 percentage point. The sale market continuing to mature, the market is projected
of floor space of commercial buildings in northeastern to shift into medium-liquidity phase around 2025 (Hu
region amounted to 33.75 million square meters, rose and Zheng).
by 13.3 percent. The growth rate was down by 5.5
percentage points. The amount of sales stood at 212.8
billion yuan, went up by 21.7 percent, the growth rate
went down by 3.8 percentage points. The floor space
of commercial housing for sale reached 645.77 million
square meters, decreased 14.41 million square meters
compared with that at the end of May in 2017. Of which,
the residential buildings for sale decreased 13.05 million
square meters, office buildings decreased 0.60 million
square meters, buildings for business use went down by
1.28 million square meters (NBS).
Chinese commercial realty sales are expected
to reach 260 billion yuan ($38 billion) by 2020, up
45 percent from the 2016 level, underlining huge
investment potential in the sector, an industry report
showed. The report, published by Los Angeles-based
commercial real estate and investment company CBRE
Group, shows that China’s bulk CRE hit 180 billion yuan
in 2016, taking a giant leap in the real estate industry.
For Alan Li, Managing Director of Capital Markets, CBRE
Greater China, the prospects for China’s CRE investment
will be very promising as both institutional investors
and developers are expected to expand investment
in this sector. “En bloc transactions will continue to
be active. China, one of the rare few markets whose
economy keeps growing at a steady pace, remains one
of the top destinations for global asset allocation,” said
Li. Looking ahead to 2020, investors are advised to
focus on urban regeneration projects in first-tier cities,
tap into the shift of high-potential CRE investment
markets into maturity phase, and explore new
opportunities brought by the establishment of the new
special economic zone of Xiong’an New Area and the
Belt and Road Initiative, Li said. “Insurance companies
will be the driving force, which are expected to inject
600 billion yuan into the market in the coming three
years while foreign institutional investors may pour
130 billion yuan,” said Grant Ji, Executive Director
of Capital Markets for North China at CBRE Group.
Although China’s investable CRE was valued at $3.4
322
trillion yuan, increased 31.4 percent, and the pace of trillion in 2016, the second highest in the world, the
increase expanded by 4.5 percentage points. The sale of country’s Transaction Activeness Ratio or TAR remains
floor space of commercial buildings in western region relatively low. The index refers to the ratio of annual
amounted to 187.46 million square meters, increased investment transactions to investable real estate
21.2 percent year-on-year up by 0.2 percentage points value, which can be quoted as an indicator of market
over the first five months in 2017. The amount of sales liquidity. Along with other BRICS countries, China is
stood at 1.1 trillion yuan, went up by 37.7 percent, the still in the low-liquidity phase. With its investment
growth rate went up by 1 percentage point. The sale market continuing to mature, the market is projected
of floor space of commercial buildings in northeastern to shift into medium-liquidity phase around 2025 (Hu
region amounted to 33.75 million square meters, rose and Zheng).
by 13.3 percent. The growth rate was down by 5.5
percentage points. The amount of sales stood at 212.8
billion yuan, went up by 21.7 percent, the growth rate
went down by 3.8 percentage points. The floor space
of commercial housing for sale reached 645.77 million
square meters, decreased 14.41 million square meters
compared with that at the end of May in 2017. Of which,
the residential buildings for sale decreased 13.05 million
square meters, office buildings decreased 0.60 million
square meters, buildings for business use went down by
1.28 million square meters (NBS).
Chinese commercial realty sales are expected
to reach 260 billion yuan ($38 billion) by 2020, up
45 percent from the 2016 level, underlining huge
investment potential in the sector, an industry report
showed. The report, published by Los Angeles-based
commercial real estate and investment company CBRE
Group, shows that China’s bulk CRE hit 180 billion yuan
in 2016, taking a giant leap in the real estate industry.
For Alan Li, Managing Director of Capital Markets, CBRE
Greater China, the prospects for China’s CRE investment
will be very promising as both institutional investors
and developers are expected to expand investment
in this sector. “En bloc transactions will continue to
be active. China, one of the rare few markets whose
economy keeps growing at a steady pace, remains one
of the top destinations for global asset allocation,” said
Li. Looking ahead to 2020, investors are advised to
focus on urban regeneration projects in first-tier cities,
tap into the shift of high-potential CRE investment
markets into maturity phase, and explore new
opportunities brought by the establishment of the new
special economic zone of Xiong’an New Area and the
Belt and Road Initiative, Li said. “Insurance companies
will be the driving force, which are expected to inject
600 billion yuan into the market in the coming three
years while foreign institutional investors may pour
130 billion yuan,” said Grant Ji, Executive Director
of Capital Markets for North China at CBRE Group.
Although China’s investable CRE was valued at $3.4
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