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South & West China : Rent for grade A office increasing steadily - Q4 2013

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South & West China : Rent for grade A office increasing steadily - Q4 2013

Shenzhen – Rent for grade A office increased modestly
In Q4, the Avic Center, with 72,000 sq m of office space, entered the market; new supply boosted demand for new office space. Net absorption in this quarter went up 157.2% quarter-on-quarter (q-o-q) to 56,729 sq m. Meanwhile, other projects were also active in their leasing campaigns, which ultimately led to strong net absorption. Leasing demand remained active and rent for grade A office went up 2.9% q-o-q to RMB 195.1 (US$32.0) per sq m per month.

Chongqing – Rent for retail remained stable
This quarter, leasing transactions in the retail sector increased. Many shopping malls adjusted their tenant mix in order to enhance their competitiveness and attractiveness. Since the competition to secure renowned brand name tenants among shopping malls was fierce, this readjustment did not lead to rapid rental growth. As of Q4, the average rent remained stable and vacancy rate increased 1.4 percentage points to 8.6%.

Chengdu – Transaction volume in residential market rose steadily
The transaction volume in the Chengdu residential market saw no obvious change in this quarter. In October and November 2013, transaction volume for first-hand property was 1,837,747 sq m, an increase of 4.7% compared to the first two months of Q3 2013. Transaction volume for second-hand property remained stable in the second half of the year, reaching 7,621.8 sq m in the first two months of this quarter, an increase of 3.9% q-o-q.

Source : DTZ (Groupe UGL)

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