Four key sales transactions made in the first quarter of 2016 concluded for a total consideration value of RMB4.3 billion. Q1/2016 saw investment deals for Decentralised offices in Putuo and Xuhui districts, and serviced apartments for Changning and Pudong districts spearheading an active start for 2016. Shanghai’s property market, and in particular downtown office assets, remains attractive for international investors, in the context of comparatively low yields in other global markets, and expected interest rate cuts.

The relatively lower lending rate and price hike in the city’s property market, domestic funds are actively seeking opportunities to acquire new assets. In view of current deals in the early stages of negotiation, domestic investors have become the top bidders. High-net-worth individuals are one of the major capital sources supporting domestic funds’ expansion into en-bloc investment.

Central government halted certain outbound investment schemes because of massive cash outflows through both official and unofficial channels over the past three months. The State Administration of Foreign Exchange has also delayed the launch of a programme for domestic individual investors to invest directly overseas, known as the Qualified Domestic Individual Investor scheme. While Anbang has made headlines with recent overseas purchases, many other companies have seen their approvals delayed.

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