Chinese Commercial Property Transaction Values at a Three-year Low

Posted on 22 December, 2014 by Jodee Redmond

In the first 11 months of this year, the transaction value of commercial properties in China fell to a three-year low. Yung Ching Realty Group has attributed the decline to a move by several life insurers to focus on overseas property markets.

Beijing, China Financial District Skyline.

Yung Ching, which is one of the leading local property agencies, has released numbers indicating the transaction value of retail shops and office space nationwide for the period totaled US $ 2.49 billion, a drop of 21.5 per cent from the previous year.

The average transaction value for each month in the first 11 months of 2014 fell about 20 per cent annually.

Chinese life insurers are barred from buying commercial property with an investment return of less than 2.875 per cent. This leaves a limited supply for them to buy in the current market.

Many have decided to look overseas for investment opportunities which have the potential to provide higher returns.

The flood of investment going out of the country has affected domestic transactions and resulted in lower selling prices.

A number of property investors have also been concerned about a tax reform being pushed by the Cabinet which seeks to collect taxes baed on the amount earned by sellers as opposed to the property value assessed by the government.

Government assessed values are usually much lower than the actual market value, which means the tax burden is very low relative to a tax system based on actual gains.

Comments are closed.

Recent Posts

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market


Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office