In the middle of the season, the beijing write-in market continued to show signs of recovery in 2021, with net absorption in one quarter about eight times as high as in the same period last year。
The beijing real estate market study of the first quarter of 2021, released in the afternoon of 14 by the international real estate servicer — first taiping davis — shows that the beijing writing building market continued the positive trend of increasing dynamism in the second half of the year in the first quarter of 2021, particularly with the emerging regions completing several important deals based on rent advantages. Benefiting from dynamic market deals, demand rebounded strongly, with a net absorption of 166,000 square metres this quarter, approximately eight times the same period last year。
While absorption increased significantly over the same period, supply increased faster. Three additional writing buildings in the regions of rizé and yao in beijing were received, with an overall supply of 318,000 square metres. The new supply pushed up the city-wide vacancy rate in beijing by 16. 6 per cent, an increase of 0. 8 percentage points and 3. 3 percentage points, respectively, in the ring。
The senior director of the chief of business and advisory services of the first taiping davis business and advisory services read a book show that, despite a significant improvement in market activity, the beijing writing building market continues to face increased market competition, and most owners continue to use the simplest direct rent cuts to attract or retain tenants. The average rent in beijing for the a-cs is rmb 344. 9 per square metre per month, and the average rent index is reduced by 0. 9 per cent and 4. 2 per cent respectively。
By industry, which are the main renters in the beijing building market
According to taiping davis, based on market deals in the first quarter of 2021, information technology (28. 3 per cent), finance (23. 7 per cent), professional services (10. 2 per cent) and health care (8. 3 per cent) businesses have acquired the top four rental areas in the beijing building market. Rental demand in other industries is relatively limited and distributed more evenly。
According to a book review, rent demand, based on the economic structure of beijing and represented by the headquarters economy, including leading enterprises such as internet technology, finance and so forth, remains the largest driver of market demand。
For the entire year of 2021, the report anticipated that the beijing writing building market would be in a surge of more than a million square metres of supplies and that owners would have to continue to “deflate” and market rents would continue to decline。
“despite a marked improvement in market dynamism, 2021 was the peak year for the supply of the beijing building, and the most important challenge for the market is how effectively to devolve the new supply.” it was argued that the supply boom would end after 2021 with a relatively limited “window period” in which both owners and tenants could take full advantage of the opportunity to adjust and transform their leasing strategies。
He said that, on the demand side, the overall downward trend in the market would allow tenants to expect to reduce rental costs, complete new leases, expand leases, upgrades, relocates or consolidate resources。
