First Pacific Davis Joins Hands with Guangdong Overseas Land to Look Forward to New Trends in Guangzhou's Commercial and Office Market
2024-07-10
On July 9th, First Pacific Davis and Yuehai Land held a media conference for the first half of 2024 at the Yuehai Yungang City Business Center in Guangzhou, releasing a report titled "Review and Outlook of the Guangzhou Real Estate Market in the First Half of 2024". Liu Weihai, Managing Director and Vice Chairman of the South China Region of First Pacific Davis Guangzhou, and Xie Jingyu, Head of the South China Region Market Research Department, attended the event. Together with many mainstream media, they reviewed the latest developments in the Guangzhou real estate market in the first half of 2024 and conducted in-depth discussions on topics such as office buildings and regional development. In his speech, Liu Weihai expressed his gratitude to his partner Yuehai Yungang City for their strong support and shared his expectations for Guangzhou's future development: "Half of 2024 has passed, and Guangzhou's real estate market has shown new vitality driven by new policies. The implementation of the new plan will further stimulate the potential of urban development and promote the comprehensive upgrading of the regional economy. First Pacific Davis not only focuses on market development, but is also committed to promoting industry innovation and progress, providing high-quality services and support to market participants." Xie Jingyu analyzed the dynamics of Guangzhou's real estate market in the first half of 2024, understood the market development trends, and looked forward to the future development prospects. Xie Jingyu said, "In the first half of the year, during a critical period of structural adjustment in the city's economy, the real estate market in Guangzhou still performed well. With enterprises actively carrying out office leasing integration adjustments, the net absorption of office buildings rebounded, and the vacancy rate decreased." According to Xie Jingyu, the growth rate of the local consumer market was' although decreasing, stable ', which helped the vacancy rate in the retail market fluctuate moderately within a reasonable range; The housing market has seen frequent favorable policies, and there has been a release of wait-and-see demand. The transaction volume and price of first-hand residential properties have rebounded month on month. Looking ahead to the second half of the year, Xie Jingyu believes that although there is still uncertainty in the macro environment, with the joint efforts of all market participants, the market is expected to receive more positive signals In terms of office buildings, Xie Jingyu said that the market sentiment is still cautious, but the supply entering the market is temporarily suspended, which is beneficial for the depletion of inventory, and the vacancy rate has turned from rising to falling. In the first half of 2024, the traditional core business district of Guangzhou's Grade A office property market welcomed two new projects into the market, both of which were delivered in the first quarter, bringing a total supply area of 127000 square meters. Since the second quarter, there have been no new project deliveries, and the pace of supply entering the market has been temporarily delayed. As of the end of the second quarter, the total inventory of traditional core business districts remained at 7.073 million square meters. Overall, in the first half of the year, the expansion sentiment of leasing in the market remained cautious, with leasing activities guided by "cost reduction and efficiency improvement" dominating the market. During the period, the enterprise actively adjusted its office leasing based on the current tenant market opportunity, hoping to find better relocation (upgrade) or integration opportunities under a lower rental budget. In the second quarter, with the implementation of several transactions in the first quarter and even earlier quarters, the market's net absorption in a single quarter rebounded to 39000 square meters, about 4.9 times that of the previous quarter. Thanks to this, coupled with the temporary suspension of supply entering the market, existing projects have achieved a slight reduction, and the average vacancy rate in the city has once again decreased by 0.5 percentage points compared to the previous quarter, recording 18.5% at the end of the quarter. In the current tenant market, reducing rent remains the main strategy for homeowners to maintain competitiveness. In the second quarter, the rental index continued its downward trend, with a month on month decrease of 1.4% and a year-on-year decrease of 5.1%. The average rent recorded was RMB 140.2 per square meter per month. In the second half of the year, considering that the uncertainty of the macro environment will still have a certain impact on business operations, tenants are expected to continue to be cautious in their leasing sentiment. In the short to medium term, reducing budgets and controlling costs is expected to continue to be an important issue in office lease negotiations. Given this, the overall performance of office property assets is expected to remain under pressure. In terms of housing, Xie Jingyu believes that the policy dividend promotes the release of demand, and the transaction volume and price have both increased month on month. In the first half of 2024, the cumulative supply area of first-hand residential buildings in Guangzhou reached 1.888 million square meters, a decrease of 22.5% compared to the previous period. Among them, in the second quarter, due to the recovery of market sentiment and the acceleration of developer promotion, as of the end of the quarter, the supply area of first-hand residential properties in Guangzhou increased by 20.0% month on month to 1.03 million square meters. During the season, thanks to the central bank's announcement of reducing the down payment ratio and the introduction of the Guangzhou 528 new policy, some rigid and improved demand that had previously been in a wait-and-see state was transformed into trading release. As of the end of the quarter, the transaction area of first-hand residential properties in Guangzhou increased by 55.1% month on month to 1.536 million square meters. However, in the first half of the year, the transaction area in the city remained at a five-year low, with a month on month decrease of 15.3% to 2.527 million square meters. In the first half of the year, most developers continued to increase their discount efforts to promote decentralization, resulting in a decrease in the average transaction price in several districts. However, due to the high average transaction price of new properties with advantageous locations and educational resources, as well as the rising proportion of transaction area in the central urban area. As of the end of the quarter, the city's average transaction price structurally increased by 3.2% month on month to RMB 46890 per square meter. In this context, the average transaction price in the city increased by 3.0% month on month in the first half of the year, to RMB 46317 per square meter. (Lai Xin She)
Edit：Lubaikang Responsible editor：Chenze
Source：cn.chinadaily.com.cn
Special statement: if the pictures and texts reproduced or quoted on this site infringe your legitimate rights and interests, please contact this site, and this site will correct and delete them in time. For copyright issues and website cooperation, please contact through outlook new era email：lwxsd@liaowanghn.com
Economy
Recommended Reading Change it 
Home
