According to a report released by Zhonglian Liangxing, a real estate professional service and investment management company, the high-quality office building market in Hangzhou continued to recover in the second quarter of 2024, with the overall vacancy rate of the office building market dropping to 25%.
According to statistics, there was no new supply of high-quality office buildings in Hangzhou in the second quarter of this year, and the vacancy rate of Grade A office buildings slightly decreased. In the second quarter, the average vacancy rate of Grade A office buildings in Hangzhou was 23.3%, a decrease of 0.8 percentage points compared to the previous quarter. The vacancy rate of Grade B office buildings is 26.5%, a decrease of 1.7 percentage points compared to the previous period.
The demand for leasing in the industry has gradually diversified, and the demand of technology Internet enterprises has gradually stabilized. In the second quarter of 2024, the net absorption of the overall office building market in Hangzhou was approximately 84157 square meters. Compared to other buildings, the net absorption performance of Grade B office buildings is stronger. From the industry demand performance in the whole first half of the year, the demand for technology Internet accounted for 28%, and the demand gradually stabilized. In addition, urban cultural related industries are gradually recovering, and the demand for segmented industries such as film and television, cultural tourism, and offline entertainment is constantly increasing.
You Peirong, General Manager of JLL Hangzhou and Nanjing Branches and Director of Commercial Real Estate Department in Hangzhou, Nanjing, and Wuhan, said, "The recovery market of Hangzhou's office building market continues. In the past two years, the expansion of high-quality office building supply has squeezed the upward momentum of rental prices. Although there were no new projects entering the market in the second quarter, resulting in a brief decrease in vacancy rate, the overall office building vacancy rate in Hangzhou is still in a slow upward trend in the past one or two years
You Peirong believes that there are many positive signals to be seen on a macro level. The GDP of Hangzhou city exceeded 500 billion yuan for the first time in the first quarter of this year, and the economic situation is gradually stabilizing, which also contains the continuous accumulation of new industries and new driving forces. The five major industrial ecosystems that Hangzhou is focusing on building are accelerating their formation, providing a continuous internal driving force for improving the liquidity of the office building market.