China GDP slowdown unlikely to weigh on CRE investment demand: CBRE

China set to embark on new growth cycle in CRE market: CBRE

Despite GDP growth slowing to 4.9%  y-o-y in Q3 2021, China’s commercial real estate (CRE) market continues to see a robust cyclical recovery, according to CBRE China GDP Brief Q3 2021 report.

CBRE is of the view that China is set to embark on a new growth cycle in commercial real estate market, backed by robust third quarter data and strong cyclical signals observed by CBRE in the market.

”The people’s Bank of China’s (PBoC) recent announcement defining the Evergrande situation as ‘controllable’ have bolstered market confidence, while the deleveraging policy is set to put the property market on a more balanced and sustainable long-term growth trajectory.”

READ ALSO : Logistics occupiers plan strong expansion in APAC amid supply crunch

Some additional highlights;

  • China’s commercial real estate market performed well over Q3 2021
    • Office net absorption rose 78% y-o-y (exceeded 2 million sq.m for second consecutive quarter; first time on record)
    • Retail net absorption rose 183% y-o-y (new record for any third quarter)
    • Logistics net absorption rose 68% y-o-y (highest quarterly level in history)
  • Short-term impact of slower GDP growth and ongoing developer financial difficulties unlikely to disrupt cyclical recovery
  • En-bloc commercial real estate volume totalled RMB 200.3 billion as of Q3 2021. This is a 42% y-o-y increase and a new record high
  • CBRE expects full-year investment volume to exceed RMB 250 billion, a growth of more than 20% y-o-y from 2020’s total

To download the full report, please click here.