China's battered commercial real estate market is expected to attract more bargain hunters this year after prices fell due to a slowing economy and increased supply. This has added to the gloom in the country's real estate industry, which has been battling an unprecedented slowdown in its residential market since 2021. An increase in the cap rate, which divides a property's net income by the transaction price, usually signals a decline in real estate values. “We're in a buyer's market.”Gu said part of the pressure on prices was caused by global real estate funds, which faced pressure to exit their investments after Covid delayed the process. The valuation of such properties is being supported by their inclusion in China's public real estate investment trust pilot, according to Flora He, executive director of valuation services at Colliers in China.

Source: Mint January 18, 2024 14:44 UTC