Investors bullish on China's real estate market

Quality property assets in premium locations in China's key cities remain attractive for investors though the real estate sector is still under pressure, experts said.

"Stagnation will be the major risks facing the global economy in the coming two years, given the Russia-Ukraine conflict and surging commodity prices. That will lead to growing inflation pressure in China," said Ma Guangyuan, an economist on real estate and macro economy. "Though the country's real estate sector hasn't fully recovered yet, quality assets in premium location will still be attractive for investors."

Beijing is one of the most sought-after markets for global investors thanks to the increased choices over property types it offers. According to the "2022 China Investor Intention Survey" released by CBRE, a commercial real estate services and investment firm, Beijing ranked second in terms of investment intentions and fifth among the cross-border investment targets in the Asia-Pacific.

In the Grade A Office market, overall rent increased for the first time in the past three years while leasing demand remained active. According to Savills, a leading global real estate service provider, the vacancy rate of Grade A office buildings fell 1.3 percentage points on a yearly basis in Beijing. And the office supply during 2022 to 2024 will drop compared to the previous year.

Meanwhile, developers are also trying to make their products more distinctive and competitive. For Li Yutong, marketing chief of Damei Center, a 5A office building in the eastern part of CBD area, the developers are making more efforts in product differentiation. For instance, the company has introduced more artworks into the project, making it an artistic business complex and making the space more flexible, ranging from 247 sq m to 2200 sq m.

Kaifusai Julaiti contributed to this story