CBRE, an international commercial real estate service and investment company, released a review of Beijing's real estate market in the first quarter of 2022 on the 6th, saying that in the first quarter, only two large transactions were reached in Beijing's property investment market, with a total transaction volume of 1.77 billion yuan. This is the first time since 2016 that the volume of block transactions in a single quarter in Beijing is less than 2 billion yuan.
The report believes that many uncertainties in the market environment and the wait-and-see mood of buyers cause the trading volume to stagnate in the short term. However, in that season, the purchase of office for self use by enterprises was still active, and a self use buyer purchased an office building in Jinmao square, Fengtai. The renewal and transformation of the core area is in the ascendant. Hantong capital acquired a small retail monomer in the Olympic sports area, which will be transformed into an office in the later stage.
The report believes that recently, developers have more actively put high-quality assets, especially newly developed properties in emerging regions, into the sales market, with more flexible trading conditions and more competitive prices. The increase in the choice of various property types and the full opening of the opportunity window for investors and self-use buyers to layout the Beijing market may make Beijing one of the most popular destinations for domestic and foreign investors this year.
According to the 2022 China Investor intention survey released by CBRE at the beginning of the year, Beijing's investment intention ranks second in the feedback of respondents in China and fifth in the target cities of cross-border investment in the Asia Pacific region. Driven by the good performance of REITs market, investors continue to overweight new economic and new infrastructure assets such as life science real estate and cold chain logistics, and actively seek breakthroughs in the field of long-term rental apartments. However, the buyer still has further requirements for the price discount provided by the seller, and the difference in price expectations between the two sides is the biggest obstacle to the conclusion of the transaction.
From the perspective of Beijing warehousing and logistics market with continuous strong performance, the report points out that there is no new project delivery in the first quarter of 2022. The storage property under construction was shut down to a certain extent during the Beijing Winter Olympics and the two sessions. However, the demand for new leases continued to pick up, of which the third-party logistics accounted for 78% of the total lease transaction area, and the consumer goods manufacturing industry also showed performance. The regions with active transactions were mainly the capital airport and Daxing Jingnan.
Due to the shortage of rentable area, in the first quarter, the leasing of Beijing warehousing and logistics market was mostly transacted with a basic unit area of about 5000 square meters. The net absorption increased by 58% to 6800 square meters month on month, and the vacancy rate decreased by 0.3 percentage points to 3.0% month on month. The average rent also increased by 0.9% month on month to 54.3 yuan per square meter per month.
Li Hong, consultant of CBRE Lihua North District and head of the real estate department of transaction services industry, pointed out that in the second three quarters of this year, Beijing will usher in nearly 290000 square meters of new supply, which is expected to promote the landing of more rental demand and intercept the spillover demand in Beijing. (end)
