Domestic buyers were again the major investors in Shanghai's buoyant real estate market in the first six months of this year, with residential and mixed-use developments being the most popular, major international real estate services providers said.
En bloc real estate investment deals, each involving more than US$10 million, soared to 17.5 billion yuan (US$2.7 billion) in the city between January and June, an annual increase of 40 percent, according to a DTZ research released Tuesday. By contrast, 23.3 billion yuan worth of en bloc property deals were transacted in the city in 2010, DTZ data showed.
"Among all property sectors, we've noticed that residential as well as mixed-use developments turned out to be the most attractive for investors in both quarters," said Jim Yip, co-head of DTZ China Investment. "For the coming six months, we expect the commercial sector, consisting of office and retail space, to draw more attention from investors."
Major investment deals secured in the first six months include China Pacific Insurance Group's purchase of The Center, a Grade A office building on Changle Road for 4.4 billion yuan, and SOHO China's acquisition of the New World Changning Commercial Center on W. Zhongshan Road for 3.2 billion yuan.
Domestic buyers were again the dominant players in the local property investment market in the first half, according to analysts.
"Domestic buyers again made up nearly 60 percent of the transacted value in the second quarter of this year, almost similar to the more than 60 percent share in the previous three-month period," said Alan Li, national director of markets at Jones Lang LaSalle Shanghai. "Companies purchasing space for self-use purposes were particularly active."
For instance, domestic buyers bought a floor in both Shanghai World Finance Center and Jasper Tower last quarter, Lang LaSalle research showed.
