Optimism in China's commercial property remains high

Chinese homebuyers look at models of residential apartment buildings during a real estate fair in Huaian city, East China's Jiangsu province, July 19, 2014. [Photo/IC]

Property developers and agents are optimistic about China's commercial market despite a correction in the residential sector in the first half of this year, research from real estate advisory company INSITE showed.

The China Commercial Real Estate Confidence index, compiled by the advisory company and another nine research institutions, was 112.1 percent in the first half, indicating optimism toward the country's overall commercial property market.

The retail sector was 13 percentage points higher than that of the office market, according to the index.

"Growing confidence in the retail sector is based on the improved economic forecast of the second half of 2014 and better consumption," said Zhang Ping, research director of INSITE.

In the office market, investors' confidence in first-tier cities is much higher than that of the second- and third-tier cities. More than 75 percent of respondents believed rent and sales of offices in first-tier cities will be stabilizing in the second half of the year. But for second hand third-tier cities, less than 31 percent of interviewees held a similar view.

The index research is based on 1,200 surveys covering 124 cities across the country.

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