Beijing Figures Q4 2022

January 19, 2023

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While two new projects came on stream in Q4 2022, full-year supply fell to its lowest level since 2015. Nearly 80% of new stock was in emerging submarkets. Quarterly net take-up turned positive but annual net take-up dropped to a record low. The finance sector was the main driver of demand, with industrial tenants also active. Overall vacancy climbed gradually over the year while average face rents declined.


As lockdowns exerted an impact on consumer activity, all submarkets witnessed different degrees of disruption. F&B was the key demand driver, while high-end outdoor fashion, New Energy Vehicles (NEVs) and café and tea retailers were active. Rents continued to decline as landlords focused on tenant retention.


Three new projects came on stream in Fangshan, Jingnan and Daxing Airport, pushing up annual supply to an historical peak. Net absorption set a record high, driven by 3PL, fresh goods e-commerce, cold-chain and data centre demand. Quarterly rental growth slowed due to the supply peak and pandemic.

Business Park

Four new life sciences projects were delivered, marking a supply peak. Life sciences and manufacturing edged out TMT as the main drivers of demand. Overall vacancy rose, with a narrow gap in vacancy observed between submarkets. Landlords in Greater ZGC provided more rental incentives.


Transaction volume rose q-o-q but declined y-o-y. State-owned buyers turned more active over the quarter, while self-use buyers accounted for the largest share of full-year investment volume. Offices were the most popular asset type, while the year also saw growing demand for multifamily. Capital values for office and retail fell through 2022, with logistics cap rates bottoming out at year’s end.