Chinanews.com Beijing, March 30 (reporter Ruan Yulin) Beijing saw strong demand for office space in the first quarter, as rental declines slowed, according to a report released Wednesday by global real estate services and consulting firm DTZ.
Lian Fengzhe, director of DTZ North Office Department, said that in the first quarter, the rental demand of Beijing office market continued to be strong, with the quarterly net absorption of 149,000 square meters and 51,000 square meters respectively in the city and the five core business districts. This quarter, is located in the north of the investment in building and li ze the quinta western union building projects such as the financial business district in the market, bringing to the market for a total of about 206000 square meters of new supplies, active market clinch a deal in Beijing five core business circle market vacancy rate fell by 0.2% to 10.6%, while Beijing’s vacancy rate is only 17.2% edged up 0.2% month-on-month.
According to the report, the good performance of leasing transactions in the Beijing office market has not only kept the vacancy rate stable in the overall market, but also narrowed the rent decline significantly. Thus far, market rents in the city and the five core business districts declined 0.8% and 0.1% from the previous month to 334.3 yuan and 386.8 yuan per square meter, respectively.
The report predicts that Beijing’s office market will see a new supply of about 3.464 million square meters from 2021 to 2025, of which 1.38 million square meters will be added in 2021, and 73.1 percent will be located in emerging business districts. In the coming year, a large amount of new supply is likely to keep the overall market vacancy rate and rental level in Beijing under pressure.
Wei Dong, head of research at DTZ, said that in this year’s government work report, science and technology self-reliance was mentioned, which shows that the high-tech sector will continue to be an important direction of development in the future. Beijing as the national center of science and technology innovation, will usher in a large number of high-tech enterprises prosperity and development, will be Beijing office leasing market derived more rental demand. In the future, with the gradual improvement of infrastructure of Lize Financial and Business District and Tongzhou Canal Business District and the acceleration of industrial upgrading, the development momentum of Beijing office market will continue to be good. (after)