Up to 50 million square meters of land for commercial use will be supplied in Beijing, Shanghai, and Shenzhen in the coming three years, according to an estimate by Shanghai E-House Real Estate R&D Institute.
The three cities will separately offer 14.15 million, 30.83 million, and 4.46 million square meters of land for commercial use, compared with their 2008 commercial property sales of 2.873 million, 2.984 million, and 466,100 square meters, respectively.
Trading Markets believes average rent of commercial properties in the Shanghai Lujianzui Financial City has decreased about 10% by now, and the vacancy rate here has hit 10%, citing a report. In Beijing and Shenzhen, some commercial properties have been marked down by 10% to 20%.
Covering a total construction area of 2.41 million square meters, a central business district will erect in the Nanjing Hexi New City with 1.55 million square meters of commercial properties and offices. Notably, the governments of many first- and second-tier Chinese cities are boosting construction of such properties.