The following is the Research on Beijing real estate market in the first quarter of 2021 From Savills recommended by recordtrend.com. And this article belongs to the classification: Beijing data.
In 2021, the Beijing office market continued to show signs of recovery. The net absorption in the first quarter was about eight times that of the same period last year.
According to the “Beijing Real Estate Market Research Report for the first quarter of 2021” released by Savills, an international real estate service provider, on the afternoon of the 14th, in the first quarter of 2021, the activity of Beijing office market continued to increase in the second half of last year, especially in Xinxing District, which completed several important transactions with the advantage of rent. Thanks to active market transactions, demand rebounded strongly, with a net absorption of 166000 square meters in this quarter, about eight times that of the same period last year.
Although the absorption increased significantly year-on-year, the supply increased faster. Beijing Lize and the Asian Olympic region ushered in three new office projects, with an overall supply of 318000 square meters. New supply pushed up the vacancy rate of Beijing to 16.6%, up 0.8 and 3.3 percentage points respectively on a month on month and year-on-year basis.
Wen Shuyue, senior director of trading and consulting services business of Savills, said that although the market activity has greatly improved, the Beijing office market is still facing increasingly fierce market competition, and most owners still adopt the simplest and direct method of reducing rent in order to attract or retain tenants. The average rent of Grade A office buildings in Beijing is 344.9 yuan per square meter per month, with the average rent index decreasing by 0.9% month on month and 4.2% year on year respectively.
From the industry point of view, which is the main rental force of Beijing office market?
According to the statistics of Savills, based on the market transactions in the first quarter of 2021, the leasing transactions of information technology (28.3%), Finance (23.7%), professional services (10.2%) and health care (8.3%) enterprises accounted for the top four rental areas in Beijing office market. The rental demand of other industries is relatively limited and evenly distributed.
Wen Shuyue believes that, based on the characteristics of Beijing’s economic structure, the head office economy, including Internet technology, finance and other leading enterprises, has the strongest demand for leasing, which will continue to be the biggest driving force of market demand.
For the whole year of 2021, the report predicts that the Beijing office market will usher in a supply tide of more than one million square meters, and the owners will have to continue to “reduce the price in exchange for reduction”, and the market rent will continue to decline.
“Although the market activity has improved significantly, 2021 is the peak year of Beijing office market supply. How to effectively reduce the new supply is the biggest challenge facing the market.” Wen Shuyue believes that the supply tide will come to an end after 2021, and there will be a “window period” with relatively limited supply. Both owners and tenants can fully seize the opportunity to carry out the adjustment and transformation of leasing strategy.
He said that for the demand side, with the help of the overall downward trend of the market, tenants expect to reduce the cost of leasing, and complete the actions of new leasing, rent expansion, upgrading, relocation or resource integration. More reading: cloud real estate data: July 2017 Beijing real estate market monthly report cloud real estate data: April 2017 Beijing real estate market analysis monthly report (with PPT) CBRE CBRE CBRE: the third quarter of 2019 Beijing real estate market review and outlook CBRE: the third quarter of 2018 Beijing real estate market review and Outlook Slipped 50% First Pacific Davies: 2017 world office revenue in the second half of the year (download) luxury price index: World City (download) First Pacific Davies: 2017 Q3 Guangzhou residential market briefing, first Pacific Davies: 2020 Wuhan commercial real estate market outlook for COVID-19 (download) First Pacific Pacific Davies: 2020 real estate investment in the first half of the world Savills: 20 retail cities in China in 2020 (download attached) Savills: the center of modern life of logistics and real estate (download attached) Savills: the trend of global real estate transactions in 2016 (download attached) Savills: mobile changsanjiao (download attached) Savills: 20 retail cities in China in 2019 (download attached)
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