Rent for Commercial Property Increases as Demand for Space Grows
Based on figures released by a local real estate company, the average monthly rent of a commercial building in the city has reached 182.8 yuan per square meter in the fourth quarter of 2014 or up by 0.7 percent from the third quarter. Vacancy rates of commercial buildings was at its lowest at 5.3 which is down by 2.3 percent from the previous quarter.
Rentals at commercial estates in Luohu District increased by 1.7 percent over the previous quarter as the district limited that amount of high end commercial buildings available. Confidence over the commercial real estate sector in the city was high as demand from new companies is expected to be robust as more than 30,000 companies were registered in the city in October and November.
As more new financial services companies and firms open for business in Qianhai as reform policies in Shenzhen free trade zone starts rolling out will hopefully drive the demand for office space. New commercial estates especially at Futian and Nanshan will enter the market in six months time due to the demand but commercial property owners are optimistic about the market. Monthly rent for logistics warehouses also increased during the fourth quarter by 32.4 percent per square meter last year.