Investors refocus on commercial property

Private investors in real estate have shifted their focus onto commercial property, according to a Ministry of Housing and Urban-Rural Development think tank.

Qin Hong, director of the Policy Research Center affiliated with the ministry, made a statement to that effect recently at a press conference to launch the 2012 Private Capital and Real Estate Industry Research Report. The report was produced by the Policy Research Center and Go High Capital, a private equity firm focused on commercial property.

They conducted a study of private investment in real estate in Wenzhou, Zhejiang province, Ordos, Inner Mongolia autonomous region, Shanxi province and northern Shaanxi.

Private capital investment in these areas has slowed amid sluggish macro-economic conditions and a shift in the dominance-structure of local industries, according to the study. While investment is down, it has also shifted from residential towards commercial opportunities.

The property market is expected to stabilize and real estate firms will be in a better financial position than last year, said Qin. Mergers between real estate companies are also likely to accelerate, he added.