A new Grade A project with a total of 87,000 sq m was available for leasing in Pazhou of Haizhu in this quarter, pushing the total stock to 5.07 million sq m. However, the demand was continuously strong as the net take-up increased to 145,000 sq m, driving the vacancy rate down to 3.7 per cent which was a record low over the past 10 years.
Savills’ report shows Pazhou office submarket recorded the most leasing transactions following by Zhujiang New Town, Yuexiu and Tianhe Bei. Pazhou and Zhujiang New Town saw the most rapid growth in their average rent which respectively increased 4.3 per cent QoQ and 3.8 per cent QoQ. Detailed data of different business areas in Q3 are as follow:
It’s anticipated that more than 2.7 million sq m of new supply will be scheduled for completion from 2019 to 2021. Although the majority of new space is located in emerging areas, such as Pazhou, International Financial Town and Panyu, it is expected to help alleviate the growing demand across the city.
In terms of the residential leasing market, the average serviced apartment rents registered a growth of 4.7 per cent QoQ to 203.1 yuan per sq m per month in Q3 due to the recent home purchasing restrictions. More new supply (mainly in Tianhe) will soon enter the market, driving up by 15 per cent. However, the vacancy rate and the growth of average rent should be less affected because of the strong demand.
Reported by Jasmine Yin
Edited by Wing Zhang
