China infographic - China Investor Intentions Survey 2016
Shanghai is the third most attractive city in Asia Pacific, behind Tokyo and Sydney. The lack of tradable assets meant Beijing lagged behind.
The percentage of China-based respondents intending to buy more compared to the previous year remain largely unchanged.
Investors are responding to the decrease in the risk-free interest rate and oversupply in lower tier cities by increasing their exposure to core assets.
Investors are displaying a stronger interest in office assets on the back of solid leasing demand in tier I markets. However, investor appetite for industrial is cooling due to the lack of stock for sale.
The lower cost of onshore financing is helping to drive a strong increase in activity by domestic investors and making it more challenging for foreign buyers to compete. However, crossborder investors still rank China as the third most attractive market in Asia Pacific.