Beijing's office market to see new supply peak

Beijing's office market will see a new supply peak driven by the thriving high technology sector, according to a Cushman & Wakefield report on Tuesday.

According to the report, the Beijing office market will see approximately 3.46 million square meters of new supply from 2021 to 2025, of which 1.4 million square meters will be in 2021.

The new office supply may continue to add pressure to the overall vacancy and rent levels of Beijing's office market, the report said.

"Science and technology development is highlighted in this year's Government Work Report and the 14th Five-Year Plan (2021-25), which sends a strong signal that the high-tech sector will continue to be an important part in government's plan of development. As a national center of science and technology innovation, Beijing is set to welcome an influx of high-tech firms supported by favorable policies, which will create more office leasing demand," said Wei Dong, director of research in Cushman & Wakefield North China.

In the first quarter of this year, high-tech companies continued to lead the office market in Beijing, with new, relocated and expanded leases of high-tech firms accounting for 34.2 percent of the total leased space in all sectors, according to the report.