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China commercial real estate investment totaled $24.8b in 2022
A tightening interest rate cycle and global macroeconomic uncertainties influenced decision-making, resulting in a 27 percent year-on-year decline in direct investment in Asia Pacific commercial real estate. According to JLL, investment totaled $129 billion for the full year 2022, in line with the firm’s projections. China registered a full-year transaction volume of $24.8 billion, a drop of 37 percent year-on-year.
However, investment activity picked up in the fourth quarter, with a 12 percent increase quarter-on-quarter in Asia Pacific supported by a 125 percent increase in China, reinforcing JLL’s conviction that the slowdown is likely to moderate in 2023.
China: Investors regaining confidence
High interest rates in the United States, persistent COVID disruptions and developer liquidity issues contributed to a challenging investment environment in China last year.
Despite these challenges, fourth quarter 2022 provided a silver lini