WHILE Shanghai witnessed gains in almost all real estate sectors as seen by higher rents in the first quarter, Beijing and Guangzhou, the country's two other first-tier cities, saw comparatively mixed performances in leasing and sales activities, according to a CB Richard Ellis report.
Offices In Beijing, the average rental rate for prime office space edged up 0.7 percent to 175.2 yuan (US$22.70) per square meter per month from a quarter earlier. The average vacancy rate rose 0.7 percentage points to 12.6 percent in the same period as a result of new supply.
Two office buildings were completed in the first quarter - China Central Place (Tower I & II) and Financial City B. The two centrally located projects have provided a combined space of 150,000 square meters for lease.
Asking rentals of prime office space rose 1.5 percent and 3.5 percent to reach 201.2 yuan and 192.6 yuan per square meter per month respectively in the central business district and Financial Street areas. Rents for the same level of properties in the Zhongguancun area dropped 2.2 percent to 142.8 yuan per square meter per month from a quarter earlier.
However, with an additional 150,000 square meters of prime office space expected to come on stream in Beijing in the second quarter, downwards pressure is also anticipated in some properties.
Meanwhile, in Guangzhou, prime office rents witnessed a drop of 0.8 percent to 90.9 yuan per square meter per month from a quarter earlier since total new supply in the quarter exceeded 330,000 square meters. Unable to absorb such space within a short time, prime office vacancy rates rose 2.6 percentage points to 17.9 percent in the period.
It is expected the average office vacancy levels in Guangzhou will continue to rise this year since a total of more than one million square meters of office will be completed within the year.within a short time, prime office vacancy rate rose 2.6 percentage points to 17.9 percent in the period.
Four prime retail properties opened in Beijing in the first quarter - Gate City Mall, Landao Jinyu Department Store, Ginza Mall and The Place - bringing total prime property area to 3.45 million square meters as of March 31.
The average rent for ground floor space in shopping malls increased one percent to 29.7 yuan per square meter per day and the average retail vacancy rate also rose 0.1 percentage point to 6.4 percent from a quarter earlier due to adequate new supply.
Meanwhile, world class retailing brands - including Louis Vuitton, Gucci, Hugo Boss, Prada, Chanel, Zegna, Cartier and Giorgio Armani - have already shown great interest in new shopping centers, which are scheduled to open later this year. And at the same time, Tesco, the United Kingdom's No. 1 retailer, also opened its first store.
In Guangzhou, rents for ground-floor and first-floor shops edged up 2.4 percent and 0.9 percent respectively to 18.8 yuan and 11.8 yuan per square meter per day in the first quarter.
Residential dmand for luxury units softened slightly in Beijing in the first quarter. The average rental of luxury apartments dropped three percent to 101.7 yuan per square meter per month and that of luxury villas fell 0.7 percent to 138.1 yuan per square meter per month. In the serviced apartment sector, the average rental dropped 1.3 percent from a quarter earlier to 208.1 per square meter per month.
However, despite a newly introduced government policy to curb foreign investment in luxury residential properties, the average sales price for luxury apartments and villas rose 2.1 percent and 4.9 percent to 22,623 yuan and 21,636 yuan per square meter respectively in the first three months, mainly because of the launch of a number of high quality properties during the period.
In Guangzhou, rents for luxury apartments and serviced apartments rose 1.2 percent and 1.1 percent to 61.1 yuan and 177.7 yuan per square meter per month respectively. The rise was driven by buoyant demand for high-quality downtown residential accommodation, rnts for villas dropped 1.7 percent to 144.4 yuan per square meter per month from a quarter earlier.
Source:佚名