BUSINESS

Domestic Buyers Drive Commercial Property Rebound in Major Chinese Cities

Published: Jul. 20, 2026 6:51 p.m. GMT+8

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Transactions surged in Beijing and Shanghai in the first half of this year as companies and local investors acquired discounted assets after overseas buyers pulled back. Photo: VCG

Commercial property sales in Beijing and Shanghai rebounded significantly in the first half of 2026 as domestic buyers capitalized on steep price cuts to snap up assets.

In the first six months of the year, major property investment in Beijing surged 50% year-on-year to 25.7 billion yuan ($3.8 billion), reaching the highest level for the period since 2022, according to recent data from real estate services firm CBRE Group Inc. Transactions in Shanghai grew 18% to 27.35 billion yuan over the same period, with domestic buyers accounting for all deals in Beijing and 92% of deals in Shanghai.

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Beijing and Shanghai commercial property sales rebounded in H1 2026, with Beijing up 50% to 25.7 billion yuan and Shanghai up 18% to 27.35 billion yuan.
Domestic buyers accounted for all deals in Beijing and 92% in Shanghai, driven by steep price cuts.
Prices in some major cities have nearly halved, making assets attractive; foreign capital declined but continues selective investment.

AI generated, for reference only

Who’s Who

CBRE Group Inc.: CBRE Group Inc., a real estate services firm, reported a significant rebound in commercial property sales in Beijing (up 50% in H1 2026) and Shanghai. The firm noted domestic buyers capitalized on steep price cuts, with corporate buyers driving 75% of Beijing's transaction volume.

Cushman & Wakefield: According to the article, Cushman & Wakefield provided data showing that in 2025, domestic buyers contributed 97% of Shanghai's 42.4 billion yuan in major property transactions, while foreign capital completed only three acquisitions.

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What Happened When

2021：: China's commercial property market recorded 273 billion yuan in transaction value.

2022：: From 2022 onward, weaker leasing conditions and rising overseas financing costs caused traditional real estate funds and international buyers to pull back from the market.

2025：: Domestic buyers contributed 97% of Shanghai's 42.4 billion yuan in major property transactions; foreign capital completed only three acquisitions.

First half of 2026：: Commercial property sales in Beijing and Shanghai rebounded significantly. Beijing's major property investment surged 50% year-on-year to 25.7 billion yuan, the highest since 2022. Shanghai's transactions grew 18% to 27.35 billion yuan. Domestic buyers accounted for all deals in Beijing and 92% in Shanghai.

First half of 2026：: Corporate buyers drove 75% of Beijing's transaction volume. Office buildings accounted for 50% of Shanghai's major property transactions, with over 60% of those deals involving buyers purchasing for their own use.

July 2026：: Gao Feng, a vice president at a Chinese real estate asset manager, said at an industry forum that property prices in some major cities have nearly halved.

As of 2026：: Industry insiders told Caixin that the decline in foreign purchases in 2025 should not be interpreted as a complete market withdrawal; some foreign capital continues to seek selective opportunities in China.

AI generated, for reference only