Commercial Real Estate Overview
The Beijing commercial real estate sector primarily formed in the mid-80's and experienced rapid development from 1992 to 1994 and a recession period from 1997 to 1999 caused by over-supply and the Asian financial storm. 2006 witnessed strong office sales transactions with demand derived from both domestic buyers and foreign institutional investors, encouraged by a combination of factors including Beijing's strong economic growth, WTO accession, the 2008 Olympics and RMB appreciation.
There are more than 800 office buildings in Beijing, over 160 of which are Class-A and providing total commercial floor space of some 5 million square meters, mainly concentrated in the east of Beijing, the city's Financial Street and the Zhongguancun area.
1. Eastern area: The supply of commercial office space in this area is about 3.50 million square meters and the area has become popular because of convenient transportation, a developed road network, rich international resources and short distance from the Beijing International Airport. Sixty percent of the international institutions in Beijing and more than 50% of star-rated hotels in Beijing are clustered in this area, which has all of the conditions needed to be an international business center, therefore becoming the first choice for foreign-invested companies.
2. Financial Street: The city's specially constructed international financial and business district has many financial enterprises and governmental departments headquartered there, including the head office of the People's Bank of China (PBC), Industrial and Commercial Bank of China, China Construction Bank and the China Agricultural Development Bank. Financial Street is fully equipped with facilities including for commerce, residential housing and international hotels. Three world-famous five-star hotels including the Ritz Carlton, Intercontinental and Westin have settled here as well. Many projects along the Financial Street are under construction, so the whole area will be more mature and more functional when they are all completed in 2008. The total supply of commercial office space is 1.10 million square meters.
3. Zhongguancun Area: Many international large-scale IT companies such as AMD, Gameloft, Hitachi and Intelligence Technology have settled in the Zhongguancun area, as the area has become known to favor international scientific and technological enterprises.
Besides the three original commercial core areas including the CBD (from Guomao Qiao to Dongsihuan), Zhongguancun and Financial Street, new commercial clusters have emerged. For example, the degree of commercial concentration is rapidly increasing in Dong'erhuan, Chaowai, Dongsanhua, Sanyuan Qiao, Yansha and along Chang'an Jie.
The average selling price of Beijing office buildings in 2006 was 16,789 RMB/sq.m, an increase of 13.3% over the previous year. The vacancy rate was 18.5% in 2006, a decrease of 24.4% over 2005, with vacancy rates for Class-A buildings dropping to 17%. The average selling price of top quality office buildings was 21,680 RMB/sq.m. Those with selling prices of 10,000 to 20,000RMB/sq.m had the largest transaction volume.
The CBD area has the highest rents among all office buildings, with average rents of Class-A buildings at 7RMB/sq.m/day and with some top class buildings at more than 10 RMB/sq.m/day. The city's Financial Street is next in line with average rents of 6 RMB/sq.m/day. Zhongguancun area ranks third, with average rents of 5 RMB/sq.m/day. Global Fortune 500 enterprises rent offices in the CBD area and foreign-invested companies account for a high proportion of high-quality office space tenants.
Average Rents in the First Half of 2007 (RMB/day/sq.m)
Area | Top level | Grade-A/Sub-A | Grade-B | Grade-C |
CBD | 10 | 7 | 5 | 3.5 |
Zhongguncun | 9 | 6 | 4 | 2.8 |
Financial Street | 9 | 5 | 4 | 2.7 |
Commercial Leasing Comparison Chart for Xicheng District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Kaichen Plaza | A129 Xuanwumen Xidajie | 10 |
International Enterprise | 35 Jinrong Jie (Financial Street) | 9.9 |
International Financial Center | 7 Quarter A, Jinrong Dajie (Financial Street) | 9.4 |
Ocean Plaza | 158 Fuxingmennei Dajie | 9 |
Britain Blue International Finance Center | 7 Quarter A, Jinrong Dajie (Financial Street) | 8 |
Canway | 66 Nanlishi Lu | 7 |
Yingtai Business Center | 8 Jinrong Dajie (Financial Street) | 6.7 |
Yanjing | 19 Fuxingmenwai Dajie | 5.8 |
Yuetan | 2 Yuetan Beijie | 5 |
Guorun | 8 Fuwai Dajie | 4.5 |
Zhongtang | 110 Xiwai Dajie | 3.8 |
Beiguang | 23 Huangsi Dajie | 3 |
Taifu | B10 Dewai Dajie | 2.4 |
Commercial Leasing Comparison Chart for Haidian District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Triumph Mansion | A143 Xizhimenwai Dajie | 8.5 |
Raycom Infotech Park | 2 Kexueyuan Nanlu, Zhongguancun | 7.5 |
Sigma | 49 Zhichun Lu | 7 |
Ideal International | 2 Zhongguancun High-tech Plaza | 6.2 |
Tengda | 168 Xizhimenwai Dajie | 5.6 |
Splendid Times | 7 Zhongguancun Xiqu | 5.6 |
Culture Mansion | 59 Zhongguancun Dajie | 4.6 |
Cyber Tower | 2 Zhongguancun Nandajie | 4.5 |
Jinqiu International Mansion | 6 Zhichun Lu Dongkou | 4.5 |
Pacific International Plaza | 106 Zhichun Lu | 4.0 |
Daheng Scitech Mansion | 3 Suzhou Jie | 4.0 |
Ruihai | 53 Lianhuachi Donglu | 3.5 |
Keshi | A28 Shangdi Xinxi Lu | 3.5 |
Yingzhi | 49 Suzhou Jie | 3.2 |
Century Technology and Trade Plaza | 66 Zhongguancun Donglu | 3.3 |
Chunsheng Taike Mansion | 27 Shangdi Information Industrial Base Donglu | 2.5 |
Commercial Leasing Comparison Chart for Chaoyang District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Beijing Development | 5 Dongsanhuan Beilu | 8.8 |
Guo'an | 1 Guandong Beidajie | 7 |
Derun | A3 Yong'anli Dongjie | 6.2 |
Avic | 2 Dongsanhuan Lu | 5.9 |
International | 19 Janguomenwai Dajie | 5.1 |
The Spaces | 8 Dongdaqiao Lu | 5.0 |
Yuanda Center | 5 Huizhong Donglu | 4.8 |
Prime Tower | 22 Chaoyangmenwai Dajie | 4.7 |
Jiadu | 14 Guanghua Lu | 3.8 |
Fengyuan | 12 Shifoying Xili | 2.2 |
Hengtai | 1 Shilibao Lu | 2.0 |
HK & Macao Center | 2 Chaoyangmen Beidajie | 9.4 |
Oriental Kenzo | 21Dongzhimenwai Zhongjie | 6.5 |
Global Trade Center | Beisanhuan Donglu | 6.0 |
Jintai B | 1 Xibahe Nanlu | 5.5 |
Grand Orient | A2 Dongzhimenwai Xiaojie | 4.8 |
Wangfu Century Plaza | 55 Dong'anmen Dajie | 4.5 |
Jingang Mansion | 23 Gulouwai Dajie | 4.0 |
Tianhong Baojing Mansion | 191 Anwai Dajie | 4.0 |
Zifeng | 1 Dayabao Hutong | 3.3 |
Jingbao | 184 Anwai Dajie, Dongcheng District | 2.8 |
Commercial Leasing Comparison Chart for Xuanwu District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Zhongjingxin International | 38 Guang'anmennei Dajie | 8.0 |
National Power Communication Center | B2 Deyuan Hutong, Baiguang Lu | 7.0 |
Guang'an | 6 Guang'anmen Nanjie | 5.5 |
Guotai | 2 Nancaiyuan Jie | 5.5 |
SuYuan-JinJiang Hotel | 3 Guangwai Dajie | 5.1 |
Central Plaza | 92 Zaolin Qianjie | 4.8 |
Xiaoxiang | 42 Beiwei Lu | 4.6 |
Haige International Hotel | 92 Xuanwumenwai Dajie | 3.4 |
Hongmian Commercial | 65 You'anmen Dajie | 2.6 |
Huashang Sci-Tech | 99 You'anmenwai Dajie | 2.3 |
Jianan | 65 You'anmen Dajie | 1.7 |
Commercial Leasing Comparison Chart for Chongwen District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Beijing New World Zhengren Plaza | 9 Chongwenmenwai Dajie | 5.0 |
Taoran | 1 Majiabao,Taoran Qiao, Nan'erhuan | 5.0 |
Jinlun | 40 Chongwenmenwai Dajie | 4.5 |
Talent international | 80 Guangqumennei Dajie | 4.0 |
Weitu | 108 Beisihuan Donglu | 3.6 |
Dehui | 29 Xingfu Dajie | 2.8 |
Dakang | 44 Chongwai Dajie | 2.3 |
Commercial Leasing Comparison Chart for Fengtai District
Beijing (June, 2007)
Building | Address | Price (RMB/m2/day) |
Shengjin Building | 2 Lianbao Lu, Beijing | 4.2 |
Gongjiao (Public Transit) | 29 Yanhuachi Xili | 4.0 |
Beijing Construction | A5 Guanglian Lu | 3.0 |
Meike | 57 Xisanhuan Nanlu | 2.7 |
Beiheng | 120 Lianhuachi Donglu | 2.5 |
Liye | 71 Majiabao Donglu | 2.2 |
Haoli | 18 Longqing Jie | 2.0 |
Xiangfengyun | 8 Fengguan Lu | 1.8 |
Commercial Leasing Comparison Chart for Other Districts, Beijing (June, 2007)
Building | District | Address | Price (RMB/m2/day) |
Yuquan | Shijingshan | 3 Shijingshan Lu | 3.5 |
Wanke | Shijingshan | 22 Shijingshan Lu | 3.3 |
Dianke | Shijingshan | 35 Lugu | 3.0 |
Huayuelong | Shijingshan | 3 Jingyuan Lu | 2.0 |
Tianyu | Daxing | 22 Wanyuan Jie | 2.5 |
Jianhua | Daxing | Dayangfang Exit of Jing-Jin-Tang Expressway | 2.0 |
Liandong Commercial Center | Tongzhou | 1 Jinghai Qilu | 1.6 |
Minimum Land Transfer Prices for Industrial Purposes(RMB/sq m)
District/County | Price |
Chaoyang, Chongwen, Dongcheng, Xicheng, Xuanwu, Fengtai, Haidian, Shijingshan | 720 |
Tongzhou | 384 |
Daxing, Changpin, Shunyi | 336 |
Mentougou, Fangshan | 288 |
Huairou | 252 |
Pinggu, Minyun County and Yanqing County | 204 |
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