While a Grade-A project in Pazhou was completed and added approximately 68,000 sqm of offices to the market in the first quarter of this year, the Lisheng GrandBuy Plaza in Liwan opened for business and provided 37,000sqm of new supplies, according to Savills, a global property agent.
Enterprises in Guangzhou become more cautious in controlling office rental costs. The city’s net absorption decreased 33.2 percent compared to the previous quarter to 53,321sqm. Detailed data of different business areas in Q3 are as follow:
It’s expected that 535,000 sqm of new office space will be scheduled for completion in 2019 and most of them will be located in Pazhou. And the growth of rent is anticipated to decline to 3 percent comparing to previous year.
As for the retail market, most of the newly-launched retail projects are located at the city’s decentralized districts such as Baiyun and Panyu. It’s anticipated that 1,290,000 sqm of new supplies will enter the market to drive up the vacancy rate and lower the average rent in 2019.
In addition, the construction of the Guangdong-Hong Kong-Macao Bay Area is expected to optimize the local retail market. In the future, some of the retail properties in the CBD will be reconstructed and upgraded, which might drive up the rent continuously while the rent in the decentralized areas will be likely to decrease because of the large amount of new supplies.
Reported by Jasmine Yin
Edited by Wing Zhang