Chinese property market recovery gains momentum

China’s GDP returned to growth in second quarter 2020, registering a gain of 3.2 percent year-over-year after contracting by –6.8 percent in first quarter 2020 following the onset of the COVID-19 pandemic.

The rebound was driven by growth in the manufacturing (up 5.1 percent year-over-year in June) and service (up 1.9 percent year-over-year in second quarter 2020) sectors. Advanced manufacturing, finance and IT all outperformed. Retail sales continued to recover, with sales falling by only 1.8 percent year-over-year in June compared with a 16 percent decrease in March. E-commerce’s share of sales increased to 25 percent.

What does it mean for real estate?

Capital markets

Commercial real estate transaction volume fell by 25 percent quarter-