INDEPENDENT MARKET STUDY (SHANGHAI & BEIJING)
By Colliers International Property Consultants (Shanghai) Co. Ltd.
To our knowledge, areas such as Tongzhou and Olympic Park
(north of Beijing) have a large scale of planned GFA, but such
GFA is planned for sale by developers.
3. Demand
Demand for Beijing’s business parks was strong during the
past five years despite the impact of the 2008 global financial
crisis. There were new setups and companies relocating from
other areas. Relocation started following the 2008 global
financial crisis, as many foreign companies sought cost
savings, sparking activity in the business park property market.
Demand comes primarily from sectors such as IT, finance,
insurance, telecommunications, pharmaceuticals, cultural and
creative, machinery manufacturing and chemicals industries.
The function of premises set up by companies in these
industries are predominantly national or regional headquarters
and R&D centres, along with back office supporting facilities
for central operations.
In terms of leasing demand, the annual demand of business
park space has averaged approximately 103,000 square
metres between 2008 and 2013. In 2013, demand totalled
approximately 65,279 square metres. In 2014, the demand
for business park remained strong with low vacancy rate
in Wangjing and Shangdi area. However, secondary less
developed business parks such as BDA and Tongzhou still have
difficulties in attracting tenants. Thus, the overall average
demand for business park space has decreased.
Figure 5: Beijing Business Parks Supply and Demand
(2008 to 2014)
Source: Colliers International
4. Vacancy Rate
At the end of 2014, the average vacancy rate rose to about
15.7 percent, an increase from 2013’s 10.6 percent, as supply
outpaced demand.
Figure 6: Beijing Business Parks Vacancy Rate (2008 to 2014)
Source: Colliers International
5. Rental
The average rental across Beijing’s business park market
experienced robust growth from 2008 to 2014, with a
compound annual growth rate of 11 percent. By the end of
2014, average effective rental levels stood at approximately
RMB 5.2 per square metre per day.
Figure 7: Beijing Business Parks Average Rental
and Growth Rate (2008 to 2014)
Source: Colliers International
58,500
122,600
105,000
161,616
203,000 199,327
98,000
106,192
20,000
65,279
47,632
116,661
sqm
New Supply
Demand
250,000
200,000
150,000
100,000
50,000
0
2008
2010
2012
2009
2011
2013
2014
29,956
sqm
New Supply
Demand
250,000
25%
0%
10%
20%
5%
15%
200,000
150,000
100,000
50,000
0
2008
2010
2012
2009
2011
2013
2014
19.5%
58,500
29,956
47,632
10.7% 15.0% 10.3% 9.3% 10.6% 15.7%
Vacancy
116,661 122,600
105,000
161,616
203,000 199,327
98,000
65,279
106,192
20,000
RMB per square metre per day
Average Rental
6.00
25%
5.00
15%
2.00
0%
0.00
20%
3.00
5%
4.00
10%
1.00
2.5%
15.0%
8.0%
23.0%
9.7%
6.2% 6.6%
Growth Rate
2008
2010
2012
2009
2011
2013
2014
2.76
2.98
3.27
4.63
4.91
5.23
3.76
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
