2 1 Shi Ji Jing Ji Bao Dao·2025-07-09 12:32Core Viewpoint - New World Development is attempting to sell part of its K11 property in Shanghai, with a total area of approximately 80,500 square meters, at a price exceeding 3.1 billion yuan, contrary to earlier rumors of 2.85 billion yuan [1][9] Group 1: Market Dynamics - The sale of commercial properties with shorter remaining usage periods is becoming more common, but transaction volumes and prices are declining [1][4] - The remaining usage period of the K11 property is 19 years, which is considered short in the current market context [1][4] - Recent transactions, such as the sale of Xianlesi Plaza, have faced challenges due to disagreements among buyers, owners, and financial institutions [1][4][6] Group 2: Transaction Challenges - Shorter remaining usage periods put sellers in a passive position during negotiations, leading to prolonged transaction cycles [2][6] - The K11 property sale reflects a broader trend where buyers are increasingly focused on value for money, often resulting in price reductions during negotiations [4][6] - The overall market sentiment is cautious, with high-value transactions decreasing and total transaction volumes hitting a five-year low [4][5] Group 3: Investment Trends - The first half of 2023 saw a significant decline in Shanghai's bulk transaction market, with total transaction amounts dropping by 30% year-on-year [5][7] - Despite the challenges, some buyers are looking to acquire properties at lower prices, particularly in the context of short-term commercial properties [7][8] - The capitalized rates for commercial properties have increased, indicating a shift in buyer expectations regarding risk premiums [8]