This aerial photo shows the central business district of Shenzhen, South China's Guangdong province, on March 19, 2019. (XINHUA)
Shenzhen’s office market saw robust growth in the third quarter, as economic vitality and policy support drove demand, according to international commercial real estate services firm CBRE.
About 537,000 square meters of Grade-A and Grade-B offices were leased out in Shenzhen from July through September, hitting a historic high and ranking top among major Chinese mainland cities, the firm said.
The city’s vacancy rate dropped by 2.2 percentage points quarter-on-quarter to 18.7 percent. Average monthly office rents remained flat at 187.4 yuan ($29.30) per square meter.
High-tech enterprises were the biggest tenants, accounting for 32.8 percent of the total rental area over the period, followed by businesses in finance and retail trade sectors, with 24.6 percent and 7.9 percent respectively.
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“Such a good performance of Shenzhen’s commercial property market over the past three months shows businesses’ and investors’ strong confidence in the city’s economic outlook,” said Ben Gu, senior director and head of capital markets at CBRE Shenzhen.
“Shenzhen’s vibrant economy, coupled with preferencial policies offered by the central government, will further boost the city’s commercial property market.”
The recently announced Qianhai development plan and Hong Kong’s Northern Metropolis development plan will bring great benefits to Shenzhen’s Qianhai special economic zone both in the short term and in the medium and long term, Gu added.
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“The attraction of Qianhai to businesses is expected to grow further, driving more office demand,” he said.
Demand for offices in Qianhai took up over one-third of the city’s total in the third quarter, CBRE said.
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