Are China's real estate markets back on their pre coronavirus trajectory?
Asia Pacific investment volumes hit $35 billion between July and September, compared to $26.1 billion in previous three months of 2020, according to JLL.
It was China that took the bulk of the region’s investment, as the country’s economic recovery continues to outpace the rest of the world. In a quarter when most economies contracted, the world’s second-largest economy grew 4.9 percent.
Domestic investors remain the predominant source of capital, but larger cities like Beijing have been drawing foreign investors as well.
In this podcast, our host, Art Patnaude, has a dialogue with JLL’s Julian Zhang, Managing Director, North China, joining us from Beijing, to discuss the implications for Asia Pacific real estate investors.
The topic at hand –the performance of China’s real estate markets
“In the third quarter, 70 percent of the transactions in Beijing involved foreign investors. Almost half of the transactions done in the city so far this year have involved foreign investors, demonstrating the global appeal of this market,” he says. “Geopolitical issues and conflict doesn’t stop investor interest in key cities like Beijing. They're more focused on market fundamentals and the solid demand dynamics in this market will continue to attract more investors from offshore.
The fourth quarter is looking like it should maintain the increased momentum. Zhang observes, “We are starting to see more and more investors show up in Beijing. This is one of the hottest market in the near future for global investors.”