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traditionally an off peak season, with only 39,826 sqm of net
new take up mainly in BEZ area (60%). This is a decrease of
more than 50% y-o-y.
2. Vacancy Rate
With limited supply, vacancy rate has been stable since 2010
declining to 6.6% in 1Q 2012. However, signifcant new supply is
expected in the next three years, equivalent to almost 0.7 times
of the current stock. Therefore, it is anticipated that the vacancy
rate will rise in the next years.
INDEPENDENT MARKET STUDY (BEIJING & SHANGHAI)
BY JONES LANG LASALLE
8. Capital Value
There are very limited projects for sale in the Business Parks
market as the functional zones strictly regulate the sale policies
to avoid speculation of such properties and wastage of land
resource.
From the properties whereby strata sale is allowed, the
transacted price ranges fromRMB14,000psm to RMB22,000psm
depending on size, location and specifcations.
Beijing
1. Supply
Source: Jones Lang LaSalle Research
Total stock for business park as at 1Q12 was 2,879,273 sqm.
There is no new supply during this period. ZPark and Shangdi
have the largest share of business park space of 984,111 sqm
(35%), with Beijing Electronic Zone (BEZ) at 900,461 sqm (31.0%)
and Beijing Economic & Technological Development Area
(BDA) at 616,998 sqm (21.0%). The net absorption in 1Q2012 is
Shanghai Business Parks Historical Supply, Demand and Vacancy Rate
2.50
3.00
3.50
4.00
2.00
1.50
1.00
0.50
0.00
100
200
300
400
500
600
700
800
900
1,000
0 2005 2006 2007 2008 2009 2010 2011 2012
Q1
Supply (‘000 sqm)
Demand (‘000 sqm)
Rental (RMB/psm/day)
2.97 3.08
3.13 3.18
2.94
3.39
3.62 3.79
Source: Jones Lang LaSalle
Total Stock (‘000 sqm)
Resource by China Statistics Bureau
500
1,000
2,000
2,500
3,000
3,500
0 2008 2009 2010 2011 2012
Q1
BDA
DongSheng
BEZ East Zone
BEZ West Zone
ZPark
ZGC Enviromental
Protection Park
Shangdi Information
Industry Base
Yongfeng Hi-Tech
ZGC Changping Park
Source: Jones Lang LaSalle Research
21%
3%
24%
7%
8%
1%
27%
5%
4%
Submarket Share of Business Park
Annual Supply (‘000 sqm)
Net Take up (‘000 sqm)
Vacancy (%)
Annual Supply, Absorption & Vacancy (RMB/sqm/day)
500
1,000
2,000
2,500
0
5%
10%
15%
20%
0%
2009 2010 2011 1Q12
Source: Jones Lang LaSalle Research
RMB/psm/day
Supply/Demand (‘000 sqm)
Annual Supply/Net Take Up (‘000 sqm
)
Vacancy
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
94