The Commercial Real Estate Market Is Expected To Rebound In The Second Half Of The Year, Affected By The Epidemic.

The outbreak of the epidemic will have a greater impact on the leasing and investment of the trade real estate market in the near future, but it is expected to rebound in the second half of the year.

The 2020 real estate market outlook report of Greater China pointed out that the new crown pneumonia epidemic will mainly affect the regional economic growth in the first half of the year. However, 5G business, financial industry opening, low interest rate environment and other long-term long-term and positive changes will continue to promote the leasing and investment activities of commercial real estate.

"The Greater China real estate market outlook 2020" said: the outbreak of the outbreak will have a greater impact on the leasing and investment of the commercial real estate market in the near future, but it is expected to rebound in the second half of the year.

At 10 a.m. on February 18th, Estee Lauder's 2000 eye cream set was snapped up 1 minutes after the meow Street on Yintai online mall. At 10 a.m. in February 20th, only 23 seconds later, consumers bought 2000 sets of Shiseido Shiseido cream essence on meow street. Since Valentine's day, sales of Wulin Yintai have been close to 50% last year, and all of them come from online.

In February 20th, Hangzhou Tower shopping mall, located in the core shopping area of Hangzhou, Zhejiang, was officially resumed. On the same day, the Hangzhou Tower set up more stringent admission checks, consumers need to measure their body temperature and produce health codes before entering. At 12 noon 05 minutes, only five minutes after the opening, the Hangzhou Tower ushered in the first single business - a pair of earrings worth 5900 yuan.

The report also said that the rebound in rental income in the second half of 2020 may offset the decrease in the first half of 2020 and ensure that annual rental income is flat or slightly lower than that in 2019. When the market environment returns to normal, some new shopping centres and high vacancy rates may provide more incentives to attract tenants.

In addition, many new shopping centres will be managed by companies with good performance records this year, so the rent growth in 2020 may also be boosted. 60% of the new shopping malls planned to open in Hangzhou, Nanjing, Chengdu and Wuhan in 2020 will be managed by experienced enterprises and 44% in 2019.

The outbreak of the new coronavirus outbreak will strike a greater blow to the Chinese economy in the short term, but the impact will be lasting. Economic growth is expected to rise in the two quarter. The Chinese government will land a series of financial opening measures in 2020, including the elimination of restrictions on foreign ownership and the acceleration of licensing approval, which will promote the steady growth of office demand in financial companies in Greater China.

The PBoC is expected to further reduce interest rates in the first quarter to cushion the economic downside risk caused by pneumonia. Risk spreads will thus expand, thereby providing support for commercial real estate investment activities.

Although the outbreak of the epidemic will have a greater impact on the leasing and investment of the commercial real estate market in the near future, it is expected to rebound in the second half of the year.