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More foreign property investors are likely to sell their Greater Bay Area assets in 2025
More foreign property investors in the Greater Bay Area are likely to sell off assets this year amid lingering uncertainties in the real estate market in mainland China.
Analysts attributed the expected sales to escalating geopolitical tensions and lower investment yields as the area’s commercial property market is plagued with oversupply.
Speculation about China Vanke’s ability to manage its US$4.9 billion onshore and offshore bonds that are maturing or facing redemption this year has also fuelled concerns about the sector.
“It is really challenging for offshore investors to come back this year, unless the return is really high, because of the interest rates and geopolitical issues,” said Charli Chan, a deputy managing director at property broker Cushman and Wakefield.
“So we see offshore investors changing their roles from buyers to sellers.”
The Greater Bay Area refers to Beijing’s initiative to integrate Hong Kong, Macau, and nine cities in Guangdong province into a globally competitive economic powerhouse.
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