[photopress:real_estatate_Shenzhen.jpg,full,alignright]A recent industry analysis conducted by CB Richard Ellis has concluded that while major property sectors in Shanghai, Beijing and Guangzhou continued to grow steadily during the third quarter, real estate markets in other major cities across the country are also still rising. Some reports:
The prime office market, as seen in our illustration, remained buoyant during the third quarter of 2007. The average price of quality office space rose 9.8% to RMB17,817 (US$2,375) per square meter from the previous quarter.
Rentals rose 2% quarter on quarter in the Grade A office market and 4.9% in Grade B buildings. About 213,835 square meters of office space was completed during the three months. The overall vacancy rate fell from 15.9% in June to 13.6% in September.
Demand was stable in the prime office market during the third quarter with average rents increasing moderately and vacancy levels continuing to drop. Overall rents rose 1% from three months earlier to RMB63.6 per square meter per month while the average vacancy rate dipped to 20.1% in September from 20.6% in June.
The prime office leasing market in Tianjin stable in the July-September period, with the average rent rising 0.2% to RMB98.7 per square meter per month. As no new supply came on the market, the vacancy rate fell 1.4 percentage points to 17.7% at the end of the quarter.
With major properties under renovation, the prime retail property vacancy rate rose to 14.4%.
Average office rents increased at an accelerated pace in the third quarter — rising 1.6% to RMB107.3 per square meter per month. And the overall vacancy rate dropped 0.9 percentage points to 10.6%.
Strong demand and lack of new supply in the prime retail market kept vacancy levels low at 2.7%. During the period, rentals for ground-floor and first-floor space recorded quarter-on-quarter growth of 4.2% and 3.7%.
Prime office rents in Chengdu rose 0.6% to RMB89.9 per square meter per month. The average rental of Grade A office space increased 2% from a quarter earlier. Vacancy rates for prime offices dropped 3.9 percentage points to 28.4% during the third quarter.
No new openings in the prime office market was recorded in Xiamen in the past quarter. The average price of prime office premises rose slightly, while rents remained almost unchanged during the period. The overall vacancy rate of the city’s prime retail properties increased 2.4 percentage points to 25.5% at the end of the quarter.