Grade-A office space is priced at 396 yuan per sq metre in Beijing, according to the latest industry figures, which means the price rose by 0.4 per cent in the fourth quarter of 2012. Property consulting firm DTZ believes rents will 'remain steady' in the first half of 2013, before climbing by around ten per cent over the course of the rest of the year.
Wei Dong, research director for north China at the company, suggested that limited supply - and the higher rents this causes - could fuel a decentralisation trend in Beijing, with organisations choosing to rent in different areas of the city. Rising rents in central areas could mean increased yields for investors, while decentralisation suggests new investment opportunities may be on the cards nearby.
"The prime office building market is very sensitive to the macroeconomic environment. We believe China's economy will do better this year and the upward trend in the office building sector will not change," said Wei.
At the end of 2012, Beijing had the seventh-highest office rents in the world, although this is one place down from a year earlier. The property market in China is currently readjusting following the release of a new policy from the State Council aimed at controlling residential property prices, according to chinadaily.com.
The government announced a series of measures, including an increase in capital gains tax, which has gone up from around one or two per cent to 20 per cent for people selling their homes.
Ian Bennett
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