Guangzhou – Investment volume rebounds
The leasing market saw a significant pick-up of momentum with the overall net absorption increasing to 86,860 sq m in Q4 and overall net absorption of 336,000 sq m in 2013. Meanwhile, citywide average rent remained stable at RMB 166.6 (US$27.4) per sq m per month, a quarter-on-quarter (q-o-q) drop of 0.3% (Figure 1), thanks to strong demand from Zhujiang New Town CBD. Looking forward, 100,600 sq m of prime office space will be launched in 2014. Therefore, as much of this stock is of extremely high quality, the citywide rent will increase while the availability ratio will increase significantly due to increasing new supply.
Wuhan – Demand in office market remains stable
Supply and demand witnessed sustainable growth with an average new supply of 120,000 sq m and an average net absorption of 80,000 sq m during the past three years. However, take-up has tapered off after sharp growth. Net absorption in Wuhan reached 16,700 sq m this quarter, which accounted for 16.8% of the total transacted volume for this year. The availability ratio reached 15.6% this quarter, a drop of 2 percentage points q-o-q. Landlords in prime projects increased their rents in the hope of capturing only quality tenants and pushed up the overall city rent to RMB 116.5 (US$19.1) per sq m per month, an increase of 1.4%.
Changsha – Office demand and supply both plentiful
Kaifu Wanda Plaza came on stream, providing about 180,000 sq m of quality office space to the office market this quarter, and total stock reached 285,000 sq m. In order to improve occupancy, rent dropped to RMB 109.5 (US$18.0) per sq m per month, a 5.6% decrease q-o-q. Net absorption hit a record 51,000 sq m this quarter. Despite the leasing market being active, vacancy soared to 46% as a result of the large amount of new supply.
Source : DTZ (Groupe UGL)