Commercial property in China has until recently remained relatively firm in the face of the global economic downturn. Most of the Chinese indicators have previously remained in positive territory, with both supply and demand holding up and expectations generally upbeat. However, the number of surveyors reporting a fall than a rise in capital values hit its worst level in the survey's history. 72 percent more Chartered Surveyors reported a fall than a rise in capital values compared to a positive 18 percent in the previous quarter with surveyor sentiment for future rises also turning negative for the first time.
Rents fell across more than 90% of the countries surveyed with the greatest downward pressure occurring across parts of Asia. Taiwan, Hong Kong, Singapore and India were ranked in the bottom five for rental performance as the collapse in world trade has smashed export earnings and business confidence.
Mr. Henry Li, Chairman of RICS China, said, "While uncertainty in the economy has affected China's commercial industry, it still remains one of the world's fastest growing commercial property markets. This RICS Global Commercial Property Survey learns more about the view and provides the latest intelligence of the surveyors and commercial experts in 5 Chinese cities including Beijing, Chengdu, Chongqing, Guangzhou and Shanghai on changing conditions and trends in China commercial property market to support the business development efforts of the industry players. Despite fiscal policies put in place by PRC government to minimize the transmission of the global financial crisis into China, negative impacts such as falling overall confidence, tight liquidity, potential fall in capital values and significant loss on the global stock markets, continue to transmit this downturn to China's commercial property market. But at the same time China continues to increase its global share of fixed investment and consumer expenditure."
