Increased investment in the Chinese real estate market

The increase in investment comes despite the fact that some media still talks about possible risks.

The influx indicates a change in the prospects for the country's real estate market, experts say. Commercial real estate and storage facilities are also in demand. Goldman Sachs can be noted as one of the major investors. The investment fund, together with the Shanghai-headquartered logistics company Sunjade, formed a joint venture to increase investment in Chinese real estate logistics and infrastructure assets. This joint venture has invested in a 240,000 square meter project located in Shanghai and neighboring areas.

In addition to that, foreign capital represented by BlackRock and Goldman Sachs is actively buying shares of Chinese real estate companies.

"These signs reflect a "fundamental shift" in market expectations for the Chinese real estate industry" - Wang Yanhang, a senior fellow at the Chongyang Institute for Financial Studies at Renmin University of China, said on Wednesday.

As of today, the valuation of the domestic real estate industry is at a low level due to the transition period, so foreign capital is taking the opportunity to accelerate its entry into the promising industry, Wang said.

The latest data showed that the rate of decline in home sales in September is slowing down, which gives hope for a recovery. Commercial home sales fell 26.3% in the first nine months of 2022, better than the 27.9% between January and August, according to data from the National Bureau of Statistics.