Guangzhou, China
 

Guangzhou and its Commercial Real Estate Market are unique in many respects. Did You Know...

•   Guangzhou, formerly known as Canton, is the capital of the Guangdong Province. It is located in the southern part of the republic and has a city population of 7 million and a metropolitan population of 13 million people, making it one of the top five most populated metropolitan areas in China.

•   Guangzhou has a history of more than 2,800 years. Archeological findings suggest that frequent trade with foreigners via sea routes took place two thousand years. 

•   Changes made in the late 1970s and tax reforms in the 1990s have led to rapid economic growth, turning Guangzhou into the industrial, financial, trade, and transportation center of Southern China. Some industries in the city include: machinery, shipbuilding, textiles, sugar-refinery, petrochemicals, light industry products, IT, telecommunications, banking, and finance.

•   China's GDP has increased by more than tenfold since 1978, and by measuring China on a purchasing power parity basis as of 2006, the nation stands as the second-largest economy in the world after the United States. As of 2006, China's $180 billion current account surplus makes it the largest in the world.

•   Due to increasing labor costs in the nearby city of Hong Kong, manufacturers and retailers have moved to Guangzhou and the surrounding areas to open new facilities. Economic growth and the city's wealth have attracted not only foreign and local firms but also a wide variety of skilled workers that satisfy the demands of different industries.

•   Guangzhou's underground railway system opened in 1999 and with three more lines currently under construction, is one of the preferred transportation methods of the workforce. The city's main airport is the New Baiyun international airport, which in 2004 replaced the old Baiyun airport located close to the downtown area. 

•   The commercial real estate market in Guangzhou continues to grow. In the first half of the year, three buildings were completed releasing 3,496,500 square feet to the office market. Currently the overall vacancy rate for the office market is about 16.2%, but it will be approximately 24.9% once the 4,305,500 square feet expected in the next two quarters are available. Overall monthly rental is about $1.57 per square feet, and the capital value is around $183. 

•   Rents in the office market are expected to remain stable, while rents in the industrial and retail markets (especially prime shopping center rents), are forecasted to slightly increase.