Beijing Figures Q1 2024

Office

One new office project came on stream in Q1 2024. New leasing volume declined as relocations continued to dominate. As large-scale surrender cases became rare, citywide net absorption tripled. The decline in Grade A rents surpassed that for the Grade B segment.

Retail

New openings included the newly renovated Wangfujing XIYUE. Mall owners were seen increasing their efforts to attract F&B brands to generate footfall. A consumption recovery underpinned rental growth, led by the CBD, Wangfujing and Sanlitun.

Logistics

One new project was completed in Shunyi. Net take-up was negative for the first time in 10 quarters. Rents fell for the first time since 2010, led by declines in Pinggu.

Business Park

R&D manufacturing properties performed well this quarter. Life sciences occupiers accounted for 40% of all new leases. Greater ZGC led the rental decline but rents in life sciences parks were stable.

Investment

Nine deals were recorded. The two largest deals were for offices, both of which involved institutional investors acquiring assets from property funds. Private and corporate investors favoured retail and hotel investment. Office cap rates climbed further.