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China / Society

Much-needed boost to Guangzhou office space

By Li Wenfang in Guangzhou (chinadaily.com.cn) Updated: 2016-07-06 15:02

New supply of 600,000 square meters of grade A office space in the second half of this year is expected to lift the vacancy rate in Guangzhou, according to Savills, an international real estate adviser.

Vacancy rate concerning grade A office buildings in the city declined by 2.3 percentage points to 10.8 percent quarter-on-quarter in the second quarter of this year, despite new supply of 146,000 square meters, said He Ling, head for research of Savills Property Services (Guangzhou) Co.

With office building development in Zhujiang New Town in Guangzhou almost drawing to an end, the focus is shifting to Pazhou area in the city. Meanwhile, with a number of quality retail property projects coming into the market in Guangzhou in the second half, vacancy is also expected to go up.

Retails in the city have retained its vitality, with famed brands opening new stores or flagship stores.

However, some traditional retail models would be challenged or withdraw, with shopping malls embracing diversified tenants and richer consumer experience, He said.

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