The crowd goes crazy..... That is the reaction that some of the current property news threatens to bring in people; it is so erratic.
Chinese house prices have been falling for several months now and registered their first annual decline in April according to official data. But according to the latest data the commercial sector is rallying.
According to the report office building rentals in Beijing rose 48 percent year-on-year in the first quarter, while average monthly rents rose 12.64 percent quarter-on-quarter to 277.57 Yuan per square meter, reports China Securities Journal, citing DTZ. Meanwhile some of the top office buildings saw rents hit as high as 1200 Yuan per square meter putting them on a par with buildings in Hong Kong.
China Securities cited the government curbs on the residential sector as fuelling commercial investment, especially as there is seemingly to be no let up in the restrictions any time soon. Investment in commercial property hit one trillion Yuan in China last year, and the report says that capital has consistently flowed into the sector this year.
Pan Shiyi, the CEO of SOHO China (0410.HK), said the surge in office rentals is the most rapid he has seen during his involvement with the real estate market, which spans more than a decade.
According to the report, for the next two years, Beijing will supply only 2.1 million square meters of office buildings.
The Beijing office sector is but a small section of the commercial market in China, and unfortunately we have no data on any other sectors, cities or areas, that is apart from the residential sector. It is still in a drastic tailspin according to the latest report from Knight Frank and China-based consultancy Holdways new home prices are now down 6% from the 2011 peak and that is conservative average considering that previous buyers on new developments have rioted over cuts of 20%.
- Thursday 17 May 2012