Guangzhou Grade 'A' Office Market

• Grade 'A' office rents increased by 2.2 per cent in the second quarter to an average of RMB114.3 per sqm per month.
• Net take-up rose to 68,364 sqm in the second quarter while the citywide vacancy rate fell by 2.0 percentage points to 8.3 per cent as the market remained active.
• The South Tower of the GT-Land Project Ph II in Zhujiang New Town was handed over in the second quarter, bringing 28,544 sqm of new supply onto the market.
• Rents in Yuexiu district increased by 0.7 per cent in the second quarter, to an average of RMB98.5 per sqm per month, while the district's vacancy rate decreased by 0.3 of a percentage point to 9.6 per cent.
• Rents in Tianhe Bei increased by 2.7 per cent in the second quarter, to an average of RMB116.2 per sqm per month, while the district's vacancy rate decreased by 0.9 of a percentage point to 3.7 per cent.
• Rents in Zhujiang New Town increased by 4.9 per cent in the second quarter, to an average of RMB132.1 per sqm per month, while the district's vacancy rate fell by 5.8 percentage points to 15 per cent.

Guangzhou Residential Leasing Market

• No lease-only residential developments were released onto the market in the second quarter.
• Serviced apartment rents increased by 1.3 per cent in the second quarter to an average of RMB163.6 per sqm per month while citywide vacancy rates decreased by 2.6 percentage points to 16.9 per cent.
• The fall in the citywide serviced apartment vacancy rate is believed to be as a result of the increased demand from recovering demand from MNCs and short term demand from visitors for the 107th Canton Fair.
• High-end villa rents fell by 1.0 per cent to RMB136 per sqm per month in the second quarter while citywide vacancy rates fell by 1.2 percentage points to 15 per cent.

Guangzhou Residential Sales Market

• Residential transaction volume fell to 793,997 sqm in the first two months of this quarter, down 15.9 per cent compared with the first two month of the year.
• With further regulations expected to be released in the coming months and the full effect of the existing regulations not yet digested by the market, buyers are continuing to exhibit caution.
• Average residential transaction price fell 0.9 per cent in the first two months of the second quarter reaching RMB13,064 per sqm.
• Average residential transaction price in suburban districts increased by 1.4 per cent in the first two months of this quarter to RMB8,661 per sqm while downtown districts fell by 0.2 per cent during the same period reaching RMB16,832 per sqm.

Guangzhou Retail Market

• Retail sales for the first two months of this quarter rose to RMB70.9 billion, up by 21 per cent compared with the same period last year.
• No new shopping malls were launched onto the market in the second quarter.
• Prime shopping mall first floor rents increased by 0.4 per cent in the second quarter to an average of RMB1,147 per sqm per month.

Information provided by:
Savills Research & Consultancy

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