Guangzhou – CBD more attractive with slight drop in office rents The mature business atmosphere and increasing supply in Pearl River New City are attracting more and more companies. This quarter, the delivery of Phase IV of G.T. Land Plaza (North Tower) brought 81,900 sq m of quality office space. With an aggressive pre-leasing campaign and a flexible rental strategy, G.T. Land successfully secured leasing contracts for all the spaces on delivery. This strategy was also applied by similar pipeline projects, which put strong pressure on existing projects to lower their rent. As a result, average grade A office rent fell by 1.3% quarter-on-quarter (q-o-q), to RMB 165 (US$26.8) per sq m per month (Figure 1). With net absorption of 56,800 sq m, the overall availability ratio rose slightly by 0.6 percentage points q-o-q, to 7.9%.
Wuhan – Rent rise underpinned by strong demand There was active absorption of grade A office this quarter, due to strong demand generated by the relocation and expansion of foreign companies in manufacturing, finance and IT. As one of the most favoured office areas, Jianshe Avenue was short of good quality spaces this quarter, resulting in a slight increase in rent that pushed up the city average rent by 1.3% q-o-q to RMB 118.9 (US$19.3) per sq m per month (Figure 1). The overall availability ratio fell by 4.0 percentage points q-o-q, to 13.9%, and the total absorption volume reached 36,442 sq m, with Jianshe Avenue accounting for 52.1%.
Changsha – Vacancy remains high although rent declines slightly
Despite there still being 120,000 sq m of grade A office space available, the space quality and structure were not attractive enough to satisfy renter requirements. Leasing transactions were mainly led by a flight to quality this quarter, with a net absorption of just 14,473 sq m, much lower than in Q2. The overall availability ratio remained high at 33.5%, although down by 4.1 percentage points q-o-q. City average rent fell by 3.5% q-o-q, to RMB 105.1 (US$17.1) per sq m per month.
Source : DTZ