Cushman & Wakefield Experts Share Market Insights at MIPIM Asia Summit
China’s Real Estate Investment Trust (C-REIT) market is entering a transformative phase, marked by rapid expansion in issuance size, diversification into emerging asset classes, and rising institutional investor confidence. Since its inception, the market has grown to reach a total issuance scale of RMB207 billion across 77 projects as of end of November, underscoring its growing maturity and strategic importance.
Cushman & Wakefield subject matter experts shared these insights at the MIPIM Asia Summit held in Hong Kong over December 3–4, highlighting the firm’s leadership in shaping the sector. To date, Cushman & Wakefield has advised on IPOs and subsequent expansions for 46 C-REITs, including nine of China’s twelve listed Retail REITs such as the recent IPO of CapitaLand Commercial China-REIT, reinforcing its dominant position in this evolving market.
Francis Li, International Director, Head of Capital Markets, Greater China, said, "China’s REIT market has demonstrated remarkable growth, expanding its market value by approximately 85% last year and securing a position among the top three REIT markets in Asia for the first time in 2024. However, with only four years of history, the C-REIT market remains relatively young compared to mature markets such as the U.S. and Japan, which highlights significant potential for future growth as the market matures and diversifies to include a broader range of investors and asset classes.
"The participation of individual investors will be pivotal in driving the development of the C-REIT market. With household savings in China exceeding RMB160 trillion (around US$22 trillion), there is immense opportunity to channel these funds into the REIT market. The Central Government’s 15th Five-Year Plan, which focuses on optimizing policies in education, healthcare, and social security, is expected to boost domestic consumption and enhance the overall financial market. This, in turn, will likely improve the liquidity of the C-REIT market, enabling it to play a more significant role in the recovery of China’s commercial real estate sector.”
Recent developments have demonstrated notable acceleration in market activity, particularly within the real estate (RE) C-REIT segment, which now accounts for 54% of the total issuance size. Expansion into sectors such as retail, rental housing, and logistics has been a primary driver of this growth. The retail sector, in particular, has seen 12 listings, raising a total of RMB30.3 billion. Strong secondary market performance, including a record-high premium in the book building process in 2025, reflects positive market sentiment and robust liquidity.
Chris Yang, Senior Director, Head of Valuation and Advisory Services, Beijing, and Head of China REIT Practice Group, commented, “Investors are increasingly drawn to the stable returns and diversification benefits offered by C-REITs. In a financial environment marked by decreasing risk-free rates, which have dropped close to 100 basis points in the last two years, C-REITs offer a compelling alternative. Prospectuses for RE C-REITs project an average dividend yield of 5.0% in the first year of listing, a significant spread over government bonds. This stable, income-generating characteristic is a primary draw for a wide range of investors seeking predictable cashflows.”
Retail sector assets, including shopping malls, outlets, and community commerce centers, have proven particularly attractive. Investors are showing a clear preference for mature, stable assets, focusing on key metrics that indicate long-term viability. Important factors identified by Cushman & Wakefield include asset maturity (5–10 years of operation), high occupancy rates (typically above 90%), and locations within first-tier or core second-tier cities. The remaining land use term (RLUT) is also another critical valuation factor.
Yang added, “Looking ahead, the C-REIT market is poised for sustained growth and further integration into China's broader economic strategy. It provides a crucial mechanism for deleveraging the infrastructure and commercial real estate sector, promoting sustainable urban development, and offering to the public a transparent and regulated vehicle for investing in high-quality infrastructure and commercial real estate assets. As the C-REIT market continues to evolve—highlighted by the recent announcement of asset class expansion to include Grade A office buildings and 4+ star hotels—its role in enabling efficient capital allocation and bolstering the long-term stability of China's commercial real estate sector is poised to become even more significant.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
