The office market in China rebounded in the latter half of 2013. Given the ongoing wave of completion of new properties in many cities, occupiers took advantage of this engage business expansion or make flight to quality moves. Take-up within the period under review was mainly driven by domestic companies, especially from TMT, finance and real estate sectors.
Amongst the cities we track, the Beijing office market recorded the most buoyant level of activity with rents continuing to soar as a result of strong demand from domestic companies and continuation of tight new conditions. By contrast has begun to begun to weigh even more negatively on rental performance.
Looking ahead, office markets in the non-core cities are forecast to witness a growing level of uncertainly. In the face of slowing demand and substantial pipeline, many projects are expected to be either delayed or to put to up for sale. Over the short to medium term, these cities will inevitability experience a period of rental correction.
Source : DTZ (Groupe UGL)