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Prime office rent growth slows

Updated: 2012-05-15 10:18
By Hu Yuanyuan ( 皇冠体育app Daily)

For Jack Ye, national director of investment and capital markets at Cushman & Wakefield 皇冠体育app, controls on housing are making office and retail properties appealing for investment purposes.

"We expect to see more offshore funds investing in real estate projects and also an increase in land transactions in second- and third-tier cities," said Ye.

"Offices in Beijing and Shanghai remain a hot spot for investment, while retail markets in first- and key second-tier cities are also a focus for institutional investors," he added.

In January, for instance, the Keppel Corporation, a Singapore-based developer, acquired a 51 percent stake in a composite site with three office buildings and a prime retail podium located in Beijing's CBD area.

According to a recent report by E-commercial 皇冠体育app, commercial complexes will continue to appeal strongly to institutional investors this year.

"As the government's curbs on the residential sector continue, the commercial sites with prime locations are the focus for deals with a transaction price exceeding $10 million," said Yin Baojun, vice-president of E-commercial 皇冠体育app.

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Prime office rent growth slows

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