China real estate: Riding the logistics wave

China accounts for more than half of all global ecommerce sales, according to DWS. On the back of rising consumption underpinned by a growing middle-income urban population and this strong ecommerce adoption, demand for prime logistics in China continues to build.

Key observations in a new report from DWS include:

Rising affluence, higher ecommerce adoption and ongoing government infrastructure initiatives are propelling logistics demand in China. Renewal of older stock and new logistics constructions are required to address the shortage of prime modern warehouse facilities. Investors seeking opportunities could focus on Tier 1 and 2 cities and neighboring satellite cities underpinned by stronger demand-supply fundamentals. Notwithstanding the positive outlook for nationwide logistics demand, market fundamentals vary widely by geographical location, and investors need to be mindful of the limited maturity and transparency risks of the