Beijing office market rebounds

13:52, November 16, 2009      

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Beijing's office market saw a steady recovery in the third quarter, with the demand from large domestic firms remaining strong and that from multinational companies picking up as the global economy revives, China Daily reported Monday.

The recovery in the office market, which is reflected in the falling vacancy rate and stabilizing rent, is powerful evidence for the resurgent economy, the newspaper said.

According to Jones Lang LaSalle (JLL), an international real estate service provider, the total net absorption of office buildings in the capital amounted to 139,100 square meters in the third quarter, which is the largest absorption recorded since the economic downturn and almost double the amount seen in each of the previous three quarters.

Within the total net absorption, 60 percent was taken by domestic financial companies, much higher than the 30 percent level seen at the beginning of the crisis in the third quarter of 2008.

The demand from multinational companies is gradually rebounding, although it was still much less than the demand from domestic firms because of the financial crisis.

JLL's latest report showed that in Beijing's overall office market, rents decreased by 2.9 percent quarter-over-quarter from July to September, much slower than previous quarters, to 208 yuan(about 30.6 U.S. dollars) per square meter per month.

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