Cushman & Wakefield has released its 2023 forecast report. The commercial real estate market in Greater China has been influenced by a number of factors over the last couple of years, not least by the COVID-19 pandemic and the subsequent lockdowns. This report generally examines the real estate industry in Greater China and looks to provide an understanding of the aspects that will influence new business opportunity generation in the region in 2023.
Shaun Brodie, Head of Content, Research, Greater China at Cushman & Wakefield, said: “Given the relaxation of COVID-19 control measures, the general economy is expected to recover in 2023. In terms of the real estate market, economic recovery is expected to boost leasing and investment demand across all property types in the Greater China region as market confidence returns. Additionally, emphasis will be further placed on high quality real estate development, smart real estate development and sustainable real estate development across cities in the Greater China region.”
Real Estate Investment
Investment in office assets is expected to remain strong, driven by end-user buyers. Industrial and logistics assets will likely remain attractive. Growing interest in alternative sectors, including life sciences, multifamily and cold storage logistics warehousing will be evident.
Office Sector
Net absorption is expected to remain positive in mainland China’s first-tier cities in 2023, partially driven by upcoming new supply completions.
Retail Sector
Consumption confidence is expected to rebound in 2023. Community shopping centers in suburban areas in mainland China are seeing greater interest as individual citizens now prefer to shop more in their local neighborhoods. Over the next three years, in 16 cities in mainland China, nearly 32% of new supply will be community shopping centers.
Industrial Logistics Sector
Into 2023, logistics warehousing is expected to continue to benefit from continued market size growth. Due to the increase in consumer spending power, changes in consumer consumption habits and the greater need for storing perishable materials, more quality cold storage logistics warehouses will need to be built and put into operation in Greater China in 2023.
Please click here to download the full report
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms in the world, with approximately 50,000 employees in over 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region, earning recognition and winning multiple awards for industry-leading performance. In 2021, the firm had revenue of $9.4 billion across core services including valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
