Strong 2014 predicted for Chinese property market | 28 January 2014
China’s commercial property is set for a strong 2014, provided the wider economy isn’t blighted by over-regulation or restriction.
New figures released by Knight Frank reveal that new retail property supply reached half a million sq m over 2013, with a vacancy rate below 10 per cent. Large-scale downtown shopping malls are thought to be among the biggest drivers of this activity, with the likes of K11, iapm and the second phase of Jing’an Kerry Centre combining to be worth some 342,000 sq m- a 16.8 per cent rise year-on-year.
Specifically, Shanghai saw the finishing of some 510,000 sq m of Grade-A office space over the past year expected to amount to a total value of RMB30 million.
Overall rental values across China have remained largely stable, henrywiltshire.co.uk reports. In the residential property world, meanwhile, luxury homes have soared by 17.1 per cent. In Shanghai, the comparative figure is 7.3 per cent.
All of this has pointed to strong growth in the country’s commercial property market – although Knight Frank noted that building restrictions, such as those exerted on Guangzhou, are likely to cool the growing market and potentially rein in any widespread growth.
The report, propertywire.com notes, claimed that the unstable global economy – coupled with slower retail sales – is likely to restrict expansion by international brands. Despite this, however, the retail leasing market still saw moderate growth, with a change in spending patterns helping to stimulate the expansion of mid-range brands.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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