China’s residential market is struggling, commercial may be bright spot

Commercial property is a bright spot in Chinese real estate, in contrast with the doom and gloom of the residential housing market.

Property analysts and developers said offices, warehouses and business parks are proving resilient, and continuing to turn over steady rental revenue — albeit discounted due to softer demand.

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Hong Kong-listed property group KWG Group Holdings recently said earnings from rents from offices and other commercial property rose 6% in the first half of the year, even though revenue from housing development and sales in China had fallen…