Global funds exit China’s commercial properties with fourth year of net selling

Foreign investors were net sellers in China’s commercial real estate market for a fourth year in 2024, hastening their retreat as the nation struggled with deflation and higher global borrowing costs diminished the potential for capital gains.

They bought US$5.9 billion worth of office, hotel, industrial and retail properties last year, the lowest since 2014, as risk appetite waned, according to MSCI, which tracks property transactions worth at least US$10 million. Investors also sold US$6.9 billion of assets at the same time.