Development Project in Guangzhou
Alex Finkelstein reports for the World Property Channel that developers Guangzhou R&F Properties Co. and Poly Real Estate Group Co. plan to add 18.3 million square feet of Class A space to Guangzhou’s inventory this year. About 90 percent of the new space will be in Zhujiang Xincheng – a zone that Guangzhou’s government earmarked as its new central business district a decade ago.
The vacancy rate in Guangzhou stands around 12 percent and may rise to 25 percent, according to the report. Furthermore, the Chinese economy may not be as robust as before with a projected 2012 GDP of 7.5 percent and the largest trade deficit in 22 years. Nevertheless, the developers believe that the projects will bring jobs and additional investment into the city to support the thousands of workers involved in construction. Over the past ten years, the Chinese government has spent much on infrastructure development and it hopes to turn Guangzhou into a global center for finance and commerce rivaling Shanghai.
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Fourth quarter average monthly rent in Zhujiang Xincheng was at $4.09/sf compared with $3.72/sf at Tianhe (Guangzhou’s former central business district), $7.43/sf in Beijing and $6.13/sf in Shanghai.
Last Updated on March 31, 2012 by Ramin Seddiq