Office rent growth to decrease to 5 % in Guangzhou

The annualized growth of rent for grade-A office buildings is expected to decrease to 5 percent in Guangzhou in the second half of the year, from 5.4 percent in the first half, due to economic uncertainties and more supply.

About 867,000 square meters of top-grade office space is coming on line in the second half, Lucy Lui, an associate director of project and development consultancy at Savills Property Services (Guangzhou) Co, said at a press conference on Wednesday.

The vacancy rate is expected to increase 15 to 20 percent in the second half, she added.

Rent for high-end retail property is expected to be flat in the city in the second half of the year due to new supply.

Meanwhile, the restrictions placed on car purchases by the city government over the weekend should have a marked impact on the sale of residential developments in suburban areas without convenient public transportation, Lui said.