Number of deals expected to rise this year in the commercial sector: Experts
China may see an increase in property transactions involving international investors in 2013, fueled by the economic recovery and the rosy outlook of China's commercial properties, industry experts said.
"On one hand, a number of deals are in the pipeline after lots of negotiations were conducted last year. On the other hand, the top management of international real estate funds are also under pressure because few deals were concluded last year," said Andy Zhang, managing director of Cushman & Wakefield China.
Shanghai's office and retail property sectors will see significant increases in large-scale deals this year, supported by investors' strong interest in commercial real estate, according to a research report from international property consultant Knight Frank.
New opportunities
China, and Shanghai in particular, are still a focus for multinational companies mulling expansion and new business opportunities so demand for commercial and residential property will remain buoyant, according to Regina Yang, director of research for Knight Frank Shanghai.
Average Grade A office rents in Shanghai have dropped 1.5 percent quarter-on-quarter by 9.1 yuan ($1.46) per square meter per day, decreasing for the first time since the third quarter of 2009.
However, owing to limited new supply, the average vacancy rate of Shanghai's Grade A offices remained at 5.1 percent.