CB Richard Ellis: Big hand investment property

CB Richard Ellis expects that the transaction volume of large-scale investment properties will drop slightly this year, which is better than the prospect of industrial buildings. Another trade war will affect the rent of Jiaxia in the Central District, which is expected to fall by about 5%.

Central District Jiaxia rent is expected to fall 5%

Luo Yingming, executive director of CB Richard Ellis’ office department, said that under the influence of Sino-US trade war, capital outflow control and RMB depreciation, the leasing demand of Chinese-funded enterprises began to slow down in the second half of last year.

Benefit from the activation of housing policy

In the market outlook, he believes that there will be 7 new Jiaxia projects completed this year, providing a total of 2.4 million square feet, of which 80% are located in non-core areas, which will further drive the relocation of the core area into a mainstream trend. He expects the trade war to be Chinese-funded. The pace of renting office buildings continued to slow down. The rent in the core area was lowered from the high level, down by about 5%, while the rent in the non-core market was up by 5%.

As for the shared workspace of one of the major tenants of Jiasha last year, he believes that this year will be the biggest test of the industry. Whether the rental situation is ideal will affect the future expansion of the industry.

In the investment market, Wang Zhenkang, executive director of the Hong Kong Capital Markets Department, said that this year’s economic growth is expected to slow down. Investors should adopt a more prudent investment strategy. As the current general property return rate is less than 3%, it will affect the fund’s intention to enter the market. Among them, the better industrial market, due to the revitalization of the revitalized industrial building plan, will stimulate more industrial buildings with reconstruction potential, thus driving up to 5% of the price of industrial buildings.