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Liu Minxia
mllmx@msn.com
THE limited supply of grade-A offices in Shenzhen led to a rise in average rent and a slight drop in vacancy rates in the third quarter of the year, according to Cushman & Wakefield, which predicted that rent would continue to rise in the coming 12 months as supply wanes.
The average rent for the grade-A offices in the city increased by 1.5 percent to 201 yuan (US$30) per square meter per month in the third quarter of the year from a quarter ago, the world’s largest private commercial real estate services company said in a report released yesterday.
The average net rent was 282 yuan per square meter per month, it said.
The three most expensive submarkets were Futian CBD, the submarket with the most grade-A stock where average rent stood at 224.2 yuan per square meter per month, Chegongmiao, where average rent stood at 199 yuan per square meter per month, and Luohu, where average rent stood at 185 yuan per square meter per month.
The overall vacancy rate of grade-A offices dropped by 0.6 percentage points to 8.2 percent in the third quarter. With no new supply during the quarter, net absorption of the top-grade offices was recorded at the relatively low level of approximately 11,000 square meters. Key sources of leasing demand came from the financial services and high-tech sectors.
“Shenzhen bucked national trends with increases across all categories of land sales,” said James Shepherd, executive director and head of research for Cushman & Wakefield’s China division. “The number of commercial parcels sold rose 10.7 percent in the first seven months of the year from a year ago while total site area increased 33.8 percent year on year to 1.05 million square meters. Total revenue soared 156.2 percent year on year to reach 42.2 billion yuan. This high volume of land sales reflects major real estate investments made in the Qianhai special economic zone by large multinational corporations such as Tencent and a transaction linked to New York City’s Silverstein Properties,” he said.
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