Savills: 2023 China Industrial Logistics Market First Half Report

The national industrial land market was relatively active in the first half of the year, with the top five cities in terms of transaction volume being Chengdu (9,443 mu), Hangzhou (8,418 mu), Guangzhou (7,956 mu), Ningbo (7,713 mu) and Chongqing (7,219 mu). The industrial land transaction volume in some non-first-tier cities was high, as the tax requirements, land unit price, labor costs and government requirements for landing industries in each city would affect the choice of land acquisition areas by enterprises to a certain extent.

Industrial land transactions were most active in West China and Central China, with the number of acres of industrial land transactions close to 42% of the national total. The land supply in the central and western regions was relatively abundant, and with the industrial adjustment of coastal cities, some enterprises moved to the central and western regions, so the land transaction price remained stable and generally lower than other regions. The average transaction price per acre in the region was 327,000 yuan, among which Changsha had the highest transaction price (571,000 yuan/acre), followed by Zhengzhou (405,000 yuan/acre).

The unit price of industrial land in first-tier cities continues to lead the country. In the first half of the year, the top five cities with the average transaction price per mu of industrial land were Shenzhen (2.334 million yuan/mu), Beijing (1.884 million yuan/mu), Shanghai (1.436 million yuan/mu), Guangzhou (613,000 yuan/mu), and Ningbo (612,000 yuan/mu). The average transaction price of industrial land in Shenzhen leads the country. The demand of local industrial customers is still relatively active, but the land supply is limited, which to a certain extent leads to the continued upward trend of land transaction prices in Shenzhen. Among them, the average transaction prices of two new industrial land plots in Longhua District and Bao'an District of Shenzhen were 14.881 million yuan/mu and 8.348 million yuan/mu, respectively, further raising the average land transaction price in Shenzhen.

In the first half of the year, most of the national logistics asset transactions were concentrated in the East China region (39 transactions, 1.79 million m²), among which Suzhou accounted for nearly one-fifth of the total logistics asset transaction area of ​​key cities in the East China region (5 transactions, a total of 339,000 m²), becoming the city with the largest logistics asset transaction volume in the first half of the year. The top five cities in terms of transaction area of ​​logistics asset trading market in the first half of the year were Suzhou, Quanzhou, Shanghai, Liupanshui and Nanjing.

The top five cities in terms of total transaction volume in the first half of the year were Shanghai (1.71 billion yuan), Suzhou (1.077 billion yuan), Foshan (799 million yuan), Chengdu (757 million yuan) and Nanjing (671 million yuan). The top five cities in terms of average transaction price were Shanghai, Hangzhou, Chengdu, Zhoushan and Foshan.

In the first half of the year, domestic capital was relatively active in the logistics asset trading market, with investments in all regions, of which 5.57 billion yuan was invested in East China, accounting for 65% of the total domestic investment. There were 4 foreign investments in logistics assets, concentrated in Foshan, Shanghai and Suzhou in East and South China, with a total investment of 1.88 billion yuan.

Target cities by region in the first half of 2023

Industrial park asset transaction area and average transaction price

In the first half of the year, the number of industrial park asset transactions was relatively small, mainly concentrated in the first-tier cities of Shanghai (5 transactions, 390,000 m², total transaction amount of 9.24 billion yuan), Beijing (3 transactions, 130,000 m², total transaction amount of 2.68 billion yuan) and Shenzhen (2 transactions, 28,800 m², total transaction amount of 390 million yuan).

Foreign investment in industrial park assets is relatively cautious, and the industrial park asset trading markets in strong first-tier cities such as Shanghai and Beijing still attract foreign investment; the total amount of domestic investment in industrial park assets is relatively large (8.34 billion yuan, accounting for about 67% of the total investment), and the investment scope is not limited to core cities such as Shanghai, Beijing and Shenzhen, but also includes some investment in industrial park assets in non-first-tier cities.

Summary of industrial land transactions and industrial logistics asset trading markets in the first half of the year

Regarding industrial land transactions: the tax requirements of each city, land unit price, labor costs and government requirements for landing industries will affect the choice of land acquisition areas by enterprises to a certain extent. Therefore, from the perspective of transaction volume, the industrial land transaction volume in some non-first-tier cities is high. In terms of price, the unit price of industrial land in first-tier cities continues to lead the country.

Regarding logistics asset transactions: In the first half of the year, most of the national logistics asset transactions were concentrated in the East China region (39 transactions, 1.79 million m²), of which Suzhou accounted for nearly one-fifth of the total logistics asset transaction area of ​​key cities in the East China region. In terms of average transaction price, Shenzhen and Shanghai led the country, at 8,914 yuan/m² and 7,611 yuan/m² respectively.

From the perspective of buyer classification, domestic capital was relatively active in the logistics asset trading market in the first half of the year, with investments in all regions, of which transactions in East China accounted for 61% of the total domestic investment. Foreign capital focused on East and South China, with projects in Foshan, Shanghai and Suzhou.

Regarding transactions of industrial park assets: compared with logistics asset transactions, they are still in the initial stage, with transactions concentrated in Shanghai and Beijing, and foreign investment transactions accounting for about 30% of the total transaction volume.

Asset trading market transaction cases in June

Logistics assets transaction