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China drives Asia commercial property investment rebound, JLL data shows
In Shanghai’s second quarter, owner-occupier demand made up 45.0% of transactions, supporting deal volumes even as the recovery remains fragile.
Global commercial real estate investment activity has accelerated, with direct investment in commercial property rising 27.0% on an annualised basis in the first half of the year, according to data cited by SCMP Economy. The sharpest increase occurred across Asia-Pacific, where transaction volumes climbed 38.0% to US$92.5 billion, marking the strongest half-year performance on record, with China emerging as the fastest-growing investment market in the region.
SCMP Economy notes that while this rebound suggests momentum, it follows a low base, making it unclear whether the recovery is underpinned by durable demand. The article points to the role of domestic buyers, particularly owner-occupiers, citing JLL findings that in Shanghai self-use demand accounted for 45.0% of transactions in the second quarter, reflecting corporates’ tendency to lower long-term operating costs through property acquisitions.