Review and Prospect of Hangzhou real estate market in the first half of 2022 From CBRE

The following is the Review and Prospect of Hangzhou real estate market in the first half of 2022 From CBRE recommended by recordtrend.com. And this article belongs to the classification: Chinese economy.

In the first half of the year, the office market recorded only a new supply of 57000 square meters, which was delivered to the Vientiane world center located in Qianjiang Century City in the second quarter. Due to the continuous fermentation of the adjustment and replacement of TMT and real estate industries, and the impact of Shanghai closure on the overall economic momentum of East China, the net absorption volume recorded only 60000 square meters, a significant decrease of 80.2% compared with the same period last year. Among them, the market activity continued to decline in the second quarter, and the net absorption volume fell by 19% to 27000 square meters month on month, mainly driven by the good pre leasing of new projects. The vacancy rate increased by 0.2 percentage points to 17.9% compared with the end of last year. The vacancy rate of emerging business districts in the west of the city, such as future science and technology city and Xixi, where TMT is concentrated, increased most significantly. The core business districts Wulin and Qianjiang new city are relatively stable driven by the elimination of high-quality buildings in the plate.

In terms of the demand for new rents in the industry, the expansion trend of TMT returned to rationality in the first half of the year, but it was still the first source of demand. The segmented industries are generally inclined to the industrial Internet, and the scene content software development, life and entertainment, and the Internet of things are the most active, among which the internal relocation transactions in Jiang village are prominent; Secondly, professional services are mainly upgraded and released by accounting and law firms, focusing on the new projects of Qianjiang Century City and Qianjiang new city; Real estate construction ranked third, and architectural design and intelligent engineering were actively upgraded and leased in Jiangcun, Chengbei and other sectors. In addition, the financial layout based on securities in Qianjiang New City, while the large-area joint office and 3C electronic products demand drive Wulin to become a major hot plate. Throughout the city, the number of transactions in small and medium-sized areas of less than 2000 square meters accounted for 87.8%, while the existing domestic tenants were mainly relocated and rent expansion was nearly 70%. In terms of the location of the industry’s rent withdrawal, the TMT adjustment is mainly concentrated in the west of the city, and the impact of other sub markets such as Huanglong and Binjiang is limited; Real estate and real estate funds are distributed in Chengbei and Qianjiang new city; In addition, the demand for education based consumer services has also been partially reduced and relocated in Huanglong and Qianjiang new city.

In terms of rent, the downward trend gradually expanded in the first half of the year. By region, the rent of the future science and technology city fell from the beginning of the first quarter, followed by the increase in the bargaining space of small owner houses in the north of the city and some core areas, and the rent fell successively in the second quarter. So far, the rent of the whole city has been reduced by 0.6% month on month to 117.5 yuan per square meter per month, with a cumulative decline of 0.7% in the first half of the year. The overall rental rate of the core business district is tenacious and stable, and the rent trend is basically flat. In addition, due to the surge of vacant areas in different markets in the short term, developers and subletting companies are also facing the situation of deepening price competition.

“In the first half of the year, the office market in Hangzhou was affected by the repeated epidemic in many places and the accelerated adjustment and replacement of major industries. The overall demand was less than expected, and the demand for small areas, as the current main area segment, could not quickly fill the vacancy in the short term. Tenants were more sensitive to prices, and the price competition between buildings became more intense. Looking forward to the next six months, with the postponement of the Asian Games, about 570000 new supplies are expected to be put on the market as scheduled, most of them concentrated in Emerging areas such as the Yongjiang development zone can better undertake the core area’s retirement and relocation or the diversified upgrading needs of modern services and manufacturing in old properties such as Xiaoshan District. At the same time, with the transformation of the second half of the Internet to new technologies such as artificial intelligence and XR digital content, the new TMT subdivision category will become a new force for the expansion of office space. Under the multiple considerations of resisting the uncertainty of the epidemic, green intelligent buildings, property flexibility and office space utilization have gradually attracted the attention of more new project developers, and the Hangzhou market will give more positive responses in the future. “

In the first half of the year, Hangzhou’s retail property market recorded a total of two high-quality projects, namely Longhu Wujiao Tianjie in the Xiasha plate and Binjiang Yintai in the Binjiang plate, with a total of 186000 square meters. Among them, Longhu Wujiao Tianjie is the first asset light Tianjie project opened by Longhu in Zhejiang. It focuses on young consumption and builds a Z generation trend distribution center with multiple themes such as sports, trendy games and designer brands. Binjiang Yintai is the first Yintai department store in Binjiang District, with nearly 350 brand stores successively settled, including the first HEMA Xiansheng plus store in Zhejiang, creating a new landmark of Binjiang consumption. In the first half of the year, the net absorption of high-quality new projects in the city was 158000 square meters, and the vacancy rate increased by 0.4 percentage points to 2.7% from the end of last year.

Catering still dominated the market demand in the first half of the year, accounting for 52%. Various categories, including traditional Chinese food, coffee, tea and baked desserts, were actively distributed. Among them, Bawang chaji, a new Chinese style national style tea brand, is actively distributing food offline. Zhejiang’s first chic1699 ocean private kitchen has appeared in Vientiane city. The Vientiane city and Hubin Yintai in77 double stores of Guochao cake brand Hutou Bureau Standard Chartered bakery have opened simultaneously, while the first Korean super popular bakery b&c Hangzhou store opened in Hangzhou Jiali center. The demand for fashion clothing accounts for 21%, and the demand for fashionable women’s clothing is bright. Among them, Korean fashion women’s no one else Hangzhou first store and Kirsh Zhejiang first store appeared in Hubin Yintai in77.

Hangzhou’s retail market has once again increased its spending power for generation Z young people, accelerated the offline expansion of brands themed with art, e-sports, social networking, environmental protection and other elements, and upgraded consumer products and scenes. The first helloart printmaking store in China has settled in Xixi Yintai city; The Guochao brand LNG derived from E-sports and the island’s first store in Zhejiang have settled in Hubin Yintai in77. In addition, the first store in Zhejiang of allbirds, a fashion brand advocating sustainable development, was also unveiled in Mixc recently, and the first store of the cutting-edge minimalist brand restore was opened in Hangzhou Kerry Center. The sporadic spread of the epidemic in the first half of the year added uncertainty to the retail market in Hangzhou, resulting in a reduction in consumers’ desire for offline consumption. The passenger flow of shopping centers and the operation of various types of businesses were affected by the epidemic and did not meet expectations. During this period, the online bookstore Yan Ji withdrew from the Hangzhou market, and its last direct store located in Joy City closed in the second quarter. The rent on the first floor of the shopping center in the city increased by 0.1% from the end of last year to 21.3 yuan per square meter per day.

“In 2022, high-quality projects will focus on entering the market in the middle of the year, injecting a stimulant into the overall downturn of the retail market due to repeated epidemics. The introduction of diverse first stores and the theme design that fits generation Z will bring more possibilities for new projects. In the long run, how to deal with the changes in consumption habits and preferences catalyzed by the epidemic is a common topic for developers and brands, and young consumption power will support the diversified development of Hangzhou market. In the next six months, Hangzhou will The state retail property market is expected to usher in a new supply of 55000 square meters, focusing on the future technology city sector, which is expected to continue to improve the commercial layout of the sector. At the same time, recently, four implementation rules for promoting consumption have been issued in a row to continue to develop the ‘first store economy’ and achieve optimal coupling with regional resources, which is expected to accelerate the recovery of the consumer market. “

More reading: CBRE: review and outlook of Beijing real estate market in the third quarter of 2020 CBRE: review and outlook of Shanghai real estate market in the first half of 2022 CBRE: review and outlook of Shenzhen real estate market in the third quarter of 2021 CBRE: review and outlook of Beijing real estate market in the first quarter of 2019 CBRE: review and outlook of Wuhan real estate market in the first quarter of 2020 CBRE: review and outlook of Shenzhen real estate market in 2021 and outlook of 2022 (download attached) CBRE: evolving grade A office market in Beijing (with download) cbre:2020 outlook for the real estate market in Greater China – office building CBRE: Research Report on Guangdong Hong Kong Macao Greater Bay Area (with download) CBRE: China’s willingness to invest in commercial real estate has reached a new high CBRE: review and outlook of the real estate market in Shenzhen in the first quarter of 2022 CBRE: review and outlook of the real estate market in Guangzhou in the first quarter of 2022 CBRE: review and outlook of the real estate market in Guangzhou in the first half of 2022 Guangdong Hong Kong Macao Great Bay Area: the future world’s first bay of China’s pioneer urban agglomeration (download attached) CBRE: 2020 Greater China real estate market outlook report (download attached)

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