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Varied property results in Beijing and Guangzhou

(Shanghai Daily)
Updated: 2007-04-24 14:03

WhileShanghaiwitnessed gains in almost all real estate sectors as seen by higher rents in the first quarter,Beijingand 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.

Related readings: Property market still hot despite cooling measures Real estate investment picks up speed in Q1 Price of new housing up 6% Realty continues sturdy growth

Offices InBeijing, 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.