Beijing's commercial realty to see rise in investment

Updated: 2015-01-26 15:13

By Hu Yuanyuan(chinadaily.com.cn)

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Beijing's commercial realty to see rise in investment

The office buildings in Beijing, Dec 15, 2013. [Asianewsphoto by Fan Jiashan]

Beijing's commercial real estate investment volume is expected to see an increase in 2015 after a sluggish 2014, as the market and policies uncertainties has been diminishing, industry experts said.

Beijing's office investment was less active than 2013, despite a high volume of enquiries and sourcing activities from international and domestic institutional investors, according to international real estate service provider Colliers International.

"But recently, we found that the process for potential investors has been much quicker, and we are anticipating a higher investment volume this year," said Xin Yong, director of Colliers Beijing.

The office investment market will continue to attract interest, given Beijing's solid market fundamentals, high rental levels and potential for the growth of asset values. However, limited investment opportunities may drive investors with a higher appetite for risk towards emerging office areas such as the Lize Financial Business District in Fengtai District and Tongzhou New Town in Tongzhou District. Asset performance is expected to be relatively stable with capital values maintaining moderate growth while yields compress slightly, Colliers' report.

According to Ted Li, executive director of capital markets, Cushman & Wakefield: "Despite slight yield growth in the market overall, core products will likely see yields remain at the current low levels due to robust investment demand and the limited number of tradable high-quality assets available for sale in Beijing."

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