A New Era in Beijing’s Entry into the Property Investment Market
On January 8th, CB Richard Ellis released “2019 Beijing Real Estate Market Review and 2020 Market Outlook”. The report pointed out that in 2019, the total transaction volume of the Beijing investment market reached a record high of 86.6 billion yuan, an increase of 68% compared with the same period last year, and surpassed Shanghai for the first time to become the country with the highest total turnover. These two new records mark a new era for Beijing to enter the property investment market, and it has officially become one of the “top-class” commercial real estate investment destinations worldwide.
Despite many uncertainties in the economic situation in the past 2019, Beijing’s property investment market has shown an active peak in recent years. CB Richard Ellis said that from the perspective of the buyer, the investment environment that tends to be open to the market has become more attractive to foreign investors, and the resulting increase in the degree of marketization has promoted the virtuous cycle of the market; From the perspective of the deleveraging policy environment, owners have a strong willingness to sell, and there are more saleable assets. Therefore, buyers and sellers jointly push Beijing’s turnover to a record.
From the perspective of the composition of the transaction parties, foreign investors are the most active buyers in the Beijing market, with the investment amount accounting for 31%, and it has maintained an upward trend in the past two years. Owner-occupiers are still important purchasers of Beijing office assets, accounting for 26% of the total transaction value. Although Haidian District still ranks first among the most favored areas for office-use buyers, with turnover accounting for more than 50%, the industrial policies and continuous improvement of the business environment in various regions are gradually improving the use of buyers. Acceptance of emerging locations in Tongzhou and Changping.
The analysis of CB Richard Ellis said that office buildings have always been the focus of investors’ attention, and in the transaction of retail property and hotel projects, the investment of commercial reform office and wine reform office accounted for nearly half, showing investment Those who remain optimistic about the fundamentals of the Beijing office market.