A report by TH Real Estate, ‘THINK: China’, notes that about half of the stock of Grade A office space in Shanghai is in the hands of foreign buyers and, predominantly, listed developers from Hong Kong and Singapore. The corresponding figures for Beijing and Shenzhen are about 25% and 15% respectively.  THRE notes that competition for stock in these cities can be tough, in part because of the ‘buy and hold’ attitude of both investors and owner occupiers. In addition, both local state owned enterprises and insurance companies have low cost of capital, and can bid aggressively.

Source : August 2015/THRE/Shanghai/OFF