During the first quarter 2018, in spite of a big amount of new supply entering into the market, the Beijing’s overall office vacancy rate decreased by 0.6 percentage points quarter-over-quarter to 5.3 percent, as a result of large take-up in some submarkets, according to Knight Frank.
The average rent of class A offices increased by 2.5 percent quarter-over-quarter to RMB380 ($59.19) per square foot per month.
During the first quarter, Wangjing area achieved outstanding performance with a sharp decrease in its vacancy rate, falling 8.6 percent quarter-over-quarter to 13.1 percent, due to booming demand from the high-tech and Internet industry. The average rent of Wangjing area increased by 2.7 percent quarter-over-quarter to RMB306 ($47.66) per square foot per month.
In the first quarter 2018, several class-A office buildings such as United Shanxi Merchants Tower and AZIA Center in Lize area, and AVIC Capital Plaza in Wangjing area were officially launched, adding about 2.9 million square feet of class A office space to the market. It is estimated there will be around 11 million square feet of new office supply in 2018, of which about half will be located in the central business areas.
Beijing’s class A office sales market remained stable during the first quarter. An en-bloc office investment transaction was recorded in first quarter: Nanhai Corp. acquired 92.36 percent of shares of Digital Manor from Sino-i Technology for HKD521 million ($66.39 million).
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