Commercial real estate demand rebounds: report
Commercial real estate demand rebounds: report
08:52, January 13, 2010 
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Data from the fourth quarter of last year compiled by real estate firm Jones Lang LaSalle shows a strong rebound in commercial property demand across Beijing.
Office space demand grew and leasing activity was high in the fourth quarter, with net absorption of 93,600 square meters.
China's overall office market stabilized in the fourth quarter, as did Beijing's, as rental prices in major Chinese cities fell more slowly, and "leasing demand in Tier-1 cities was robust," Jones Lang LaSalle said in a press release distributed Tuesday.
The press release said several pre-leases signed in the fourth quarter indicated luxury brands were returning to the retail market.
It said rents were under pressure from newly-completed projects, but added that "some well-occupied malls ended the year on a high note."
Jones Lang LaSalle said luxury apartment rentals fell 28 percent from the peak reached in the second quarter of 2008, though overall market rents stabilized in the fourth quarter, driven by recovering demand.
"Rents were stable compared to sharp drops earlier this year triggered by repercussions of the world financial crisis," the press release said.
"In line with bullish rebound in the residential market, capital values in prime office sectors increased steadily.
A number of domestic and overseas institutional investors, with an optimistic view of the mid-to-long term Beijing property market, actively negotiated with landlords for en-bloc purchases," Qin Xiaomei, local director of Jones Lang LaSalle, was quoted as saying in the press release.
Analysts said in the long term some domestic developers who used to only develop residential properties will also enter the commercial real estate market.
"Some domestic developers with strong capital strength asked for advice from us about investing and developing in this area," Zhang Ying, managing director of Jones Lang LaSalle, Beijing, told the Global Times, without disclosing their names or timelines.
The domestic real estate market will inevitably enter a more mature stage, and in the future developers will hold both residential properties and commercial long-time holding investment properties, like serviced apartments or shopping malls, Zhang said.
Source: Global Times
Office space demand grew and leasing activity was high in the fourth quarter, with net absorption of 93,600 square meters.
China's overall office market stabilized in the fourth quarter, as did Beijing's, as rental prices in major Chinese cities fell more slowly, and "leasing demand in Tier-1 cities was robust," Jones Lang LaSalle said in a press release distributed Tuesday.
The press release said several pre-leases signed in the fourth quarter indicated luxury brands were returning to the retail market.
It said rents were under pressure from newly-completed projects, but added that "some well-occupied malls ended the year on a high note."
Jones Lang LaSalle said luxury apartment rentals fell 28 percent from the peak reached in the second quarter of 2008, though overall market rents stabilized in the fourth quarter, driven by recovering demand.
"Rents were stable compared to sharp drops earlier this year triggered by repercussions of the world financial crisis," the press release said.
"In line with bullish rebound in the residential market, capital values in prime office sectors increased steadily.
A number of domestic and overseas institutional investors, with an optimistic view of the mid-to-long term Beijing property market, actively negotiated with landlords for en-bloc purchases," Qin Xiaomei, local director of Jones Lang LaSalle, was quoted as saying in the press release.
Analysts said in the long term some domestic developers who used to only develop residential properties will also enter the commercial real estate market.
"Some domestic developers with strong capital strength asked for advice from us about investing and developing in this area," Zhang Ying, managing director of Jones Lang LaSalle, Beijing, told the Global Times, without disclosing their names or timelines.
The domestic real estate market will inevitably enter a more mature stage, and in the future developers will hold both residential properties and commercial long-time holding investment properties, like serviced apartments or shopping malls, Zhang said.
Source: Global Times
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