China commercial property woes trigger surge in distressed sales

More than a fifth of commercial deals involve real estate put into receivership

20240313 Deserted shopping mall in central Beijing in March

Sales of offices, stores and other commercial properties in China totaled $38.6 billion in 2023, down from $60.3 billion as recently as 2021. (Photo by Mizuho Miyazaki).

ECHO WONG, Nikkei staff writer

HONG KONG -- Distressed sales made up more than a fifth of Chinese commercial real estate deals in 2023, underscoring the severity of the property crisis in Asia's largest economy.

Overall sales of offices, factories, stores, hotels, apartments, senior housing and other commercial properties in China totaled $38.6 billion last year, down from $60.3 billion as recently as 2021, according to MSCI Real Assets.

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