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Property Times

Guangzhou & Central China : Office market shines - Q1 2014

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Guangzhou – Office leasing and sales buoyant in Zhujiang New Town The office leasing market started to pick up approaching the end of Q1, with overall net absorption increasing to 57,118 sq m, a y-o-y growth of 9.2%. Overall rent increased by 0.9% quarter-on-quarter (q-o-q), to RMB 168.1 per sq m per month (US$27.3). Zhujiang New Town continued to be the hot spot, ttracting occupiers from the IT, financial and medical sectors, and account for for 85.5% of the transacted space. Meanwhile, with the business atmosphere becoming more mature in Zhujiang New Town, the limited amount of office offered for sale has become more valuable and transactional activity is higher.

Wuhan – Office rent stabilised after 3 years of active growth A large quantity of new supply entering the market has led to narrowing of rental growth and a high availability ratio. Total stock reached 920,770 sq m in Q1 2014 and net absorption reached 33,421 sq m. After 3 years of active growth, the overall rent stabilised this quarter, with just a modest increase of 0.8%, to RMB 117.4 (US$19.1) per sq m per month. However, the availability ratio reached 18.2% in Q1 2014, an increase of 2.6 percentage points q-o-q.

Changsha – Net absorption stable with slight rent increase
Existing stock continued to get absorbed this quarter, with a net absorption of 26, 190 in Q1. Steady improvements in occupancy for new properties delivered last quarter encouraged landlords to raise rents slightly while still maintaining leasing competitiveness. This resulted in the overall rent rising slightly by 1.7%, to RMB 106.7 (US$17.3) per sq m per month.

Source : DTZ (Groupe UGL)