Despite the coronavirus pandemic, domestic and overseas investors are still injecting capital into commercial properties in the Guangdong-Hong Kong-Macao Greater Bay Area, betting big on its long-term economic outlook.
According to real estate services provider Colliers International, Guangzhou and Shenzhen — two core cities in the 11-city cluster — secured a total of 12 commercial-property deals in the first half of this year, higher than the 11 deals made during the same period last year. The total value of the transactions reached 10.8 billion yuan ($1.5 billion).
Guangzhou and Shenzhen — two core cities in the 11-city cluster — secured a total of 12 commercial-property deals in the first half of this year
“This shows that investors are still upbeat about the Bay Area’s economic outlook in the long term although the pandemic has nearly crippled business activities,” John Lin, South China director of capital market and investment services at Colliers, said on Friday.
Shenzhen clinched seven of the deals, while Guangzhou had five. Office buildings accounted for the majority of the transactions with 46 percent, followed by retail property and industrial property, which took up 27 percent and 18 percent, respectively. Commercial apartments took up 9 percent.
While domestic investors were still the major force behind the investments, accounting for 74 percent, Lin said he has seen growing interest among overseas investors.
He also noted remarkable growth in online consumption, due to travel restrictions imposed in the wake of the coronavirus outbreak.
“The new trend has made investment in warehousing logistics property more active,” he said.
“Investors are stepping up investment in this specific area. We expect warehousing logistics to be a hot spot for commercial property investment in future.”
