Logistics, rental apartments, alternative assets become hottest sectors for investors

Diversified property sectors have received much attention with logistics, rental apartments, and alternative assets being the investment focus across the country.

"Logistics, rental apartments and alternative assets are the major focus for investors at this moment," said Jessie Xu, operations director, China and head of Capital Markets, North China, JLL. "The accelerated development of life sciences and intelligent manufacturing industries has promoted the continuous market interest in the business parks."

According to data and analysis published in JLL's Investor Sentiment Barometer 2022, 90 percent of respondents plan to increase investments in logistics, while 70 percent of investors state they will raise investments in rental apartments.

Experts from another global real estate service provider CBRE also noticed the trend, saying investors are more flexible and open in choosing new types of assets, such as increasing investments in life science real estate and cold-chain logistics.

Beijing is one of the most sought-after markets for global investors thanks to the increased choices over property types it offered. According to the "2022 China Investor Intention Survey" released by CBRE, Beijing ranked second in terms of investment intentions and fifth among the cross-border investment targets in the Asia-Pacific.

In the Grade A Office market, overall rent increased for the first time in the past three years while leasing demand remained active. Overall rents reached a turning point in the first quarter of 2022, as the growth rate turned to positive, up 1.2 percent quarter-on-quarter but still slightly down 0.3 percent year-on-year.

According to Michael Zhang, director of Office Leasing for JLL Beijing, the recovery in the Grade A office market proceeds 2022. And overall rents are predicted to rise by 6.7 percent for the full-year.

"Paired with the city's scarce commercial assets, the gradually rebounding rents in sub-markets of office and retail properties provide the best time for investment," said Liu Huanli, CBRE's managing director for North China.

Kaifusai Julaiti contributed to this story