2023中國物流地產報告-第一太平戴維斯

20233

2

快遞運輸量城市

60%

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20%

10%

0%

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7.50%

4.74%

6.77%5.04%

5.91%

5.33%

4.90%

7.15%

0.94%

4.41%

3.23%

6.54%

6.17%

5.10%

4.95%

3.64%

2.86%

2.63%

36.80%

23.13%

0%

10%20%

30%40%50%60%70%80%90%100%

2017

2022

21.56%

30.72%

?

?

?

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1

3

2023

2

4

6

5

March2023

1

ChinaMacro03

2

Regionalreviews08

3

Investmentmarket16

4

Outlook20

Logistics2

ChinaLogistics3

China

Macro

ChinaLogistics4

Source:CFLP,SavillsResearch

RMBtrn

Logisticsvaluesreachnewheights

China’sexpandingnationallogisticsnetworkfuelsdemandforlogisticsrealestate

China'slogisticsvaluegrew3.4%in2022toRMB347.6trillion,whilethetotalrevenueofthelogisticsindustryreachedRMB12.7trillion,up4.7%YoY.

Railwaytransport,coldchainfacilities,andexpressdeliverymaintainedhighergrowthrates.Thenationalrailwaynetworktransported3.9billiontonsofgoods,up4.7%YoY,thehighestinnearlythreeyears.Cold-chainlogisticsmarketsizeisexpectedtoexceedRMB450-490billionin2022.Expressdeliveryvolumestotalled110.6billionparcels,anetincreaseof2.3billionoverthepreviousyear.

Internationallogisticscontinuetounlocknewroutesandexpandexistingchannelswith16,000China-Europefreighttrainsoperatedand1.6millionTEUsshippedin2022,up9%and10%YoYrespectively.Meanwhile,theNewLand-SeaCorridorinwesternChinamaintainedstronggrowthmomentum,with756,000TEUsshippedin2022,up18.5%YoY.

360

340

320

300

280

260

240

220

200

ChinaLogisticsValuebyproductcategory

AgriculturalProductIndustrialProductImportedGoodRenewableResourceConsumerGood

20152016201720182019202020212022

ChinaLogistics5

Source:MinistryofCommerce,SavillsResearch

USDbn

FDIincreasesdespiteheadwinds

FDIdrivesindustrial&logisticsdemand

Utilizedforeigndirectinvestment(FDI)totalledUS$189.1bn(RMB1.23trn).Despitethecontinuousbusinessdisruptionandlockdownsthroughouttheyear,investmentgrew8%YoYand6.8%5YRCAGR.TheYangtzeRiverDeltaregionisstillthemostattractiveregionforforeigncapital.

Keysectorsofgrowthhavebeenhigh-techmanufacturingwhichgrewby28.3%YoY,andtheautomobile(includingEVs)sectorwhichrecordedanincreaseof264%,drivingthedemandforhigh-standardfactoryandwarehousespace.Chinaremainsacriticalcomponentoftheglobalsupplychain.

Covidpolicies,tradetensions,risingcostsandotherconsiderationshaveencouragedinternationalfirmstoconsideraugmentingorreplacingpartoralloftheirsupplychaintomarketssuchasVietnamandIndia.Additionally,targetedexportrestrictionsinsectorssuchassemiconductorswillforcecompaniestolookfordomesticsubstitutes.Whilethesemaynotbeonparwithinternationalpeers,increasedsalesrevenueswillallowdomesticmanufacturerstoinvestmoreinR&Dandbeginnarrowingthetechnologicaldivide.

200

190

180

170

160

150

140

130

120

110

100

UtilizedForeignDirectInvestment

20152016201720182019202020212022

ChinaLogistics6

Coldchaincatalyst

Fromfreshfoode-commercetoready-to-eatmeals

Demandforfreshfoodandpharmaceuticalproductssurgedduringcovidwithincreasedattentionbeingpaidtofoodsafetyandstandards,boostingdemandforthecoldstoragesector.

Societalchangespresentpriortocovidwerealsoaccelerated.Moreandmorefamilieshavebothparentsworkingwhileworkinghoursarelengtheningwithworkcreepingintopersonallives.Also,othersaredecidingtogetmarriedlateroninlifeorchoosingtoliveamoresolitarylifestyle.Whilerestaurantfooddeliveryserviceshaverecoveredmanyarechoosingtocontinuetocookathomebutdonothavethetimetopreparefoodorrequiresmallerportions,drivingdemandforready-to-cookorprepreparedcookingingredients.Atthesametime,somerestaurantsarealsolookingtoreducelabourandrealestatecostsbyhavingmoreofthefoodpreparationhappeningoff-site.

AccordingtoCITICSecurities,themarketforpre-prepareddishesisexpectedtoreachaboutRMB1trillioninthenextdecade.Morecoldchainfacilitiesarethereforeincorporatingproductionlinestoclean,processandpackagefoodenablingconsumerstoreceiveReady-To-Cookpackagesontheirdoorsteps.

“QualityEvaluationofPreparedDishes”specifiesthatfrozenprepareddishesshouldbestoredattemperaturesbelow-18°Cwhilerefrigeratedprepareddishesshouldbestoredattemperaturesbetween0°Cand4°C.Asincomelevelsrise,consumers'requirementsforfooddiversity,nutrition,andtastearerising.Thedevelopmentofthecoldchainmarketremainsataverynascentstageofdevelopmentwithstructuralchangeslikelytopropelgrowthfordecadestocome.

Source:CFLP,SavillsResearch

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16

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20

2.90

8.30

10.38

4.77

9.63

10.03

64.58

5.03

10.23

5.94

14.90

8.62

9.28

6.15

11.01

8.83

5.91

9.05

4.61

5.24

ChinaLogistics7

CourierExpressGrowth

Livestreaminge-commercecitiesclimbuptherankings

Onlineandtechplatformshavebeenakeyfocusforregulators,sometimestothedetrimentofaparticularsectorsuchasonlineeducation,butinothersectorstocurbmonopolisticbehaviourcreatingnewopportunitiesforentrantssuchaswiththee-commercesectorwhichhasseentheentryofbyte-danceandlittleredbook.Despiteweakerconsumersentimentonlinesalescontinuedtogrowwithnewchannelsforconsumerengagementemerginglikelivestreamingandsocialcommerce,withthetotalnumberofparcelsdeliveredgrowingto110.6billionin2022.

Outofthetop50citiesforparceldeliveries,JieyangandShantouinGuangdongprovincestandoutfortheirphenomenalgrowthoverthelastfouryearsdrivenbygovernment-supportedindustryplanning,infrastructureandadaptivemanufacturingcluster.Howevermostimportantwastheentrepreneurialspiritofthesmallerfirmsinthesecitiesandthedemocratisationofsaleschannelsthatthegrowthofthesenewplatformsallowed.

Top20citiesbyparcelsdelivered

2019202020212022Rank

City

Jinhua-Yiwu

Guangzhou

Shenzhen

Jieyang

Hangzhou

Dongguan

Shanghai

Shantou

Suzhou

Quanzhou

Beijing

Wuhan

Chengdu

Wenzhou

Foshan

Zhengzhou

Shijiazhuang

Ningbo

Linyi

Taizhou

Parcels

delivered(mn)

11,805

10,131

5,800

3,729

3,485

2,881

2,858

2,457

2,435

2,108

1,956

1,846

1,760

1,676

1,584

1,485

1,462

1,441

1,434

1,398

2018-2022CAGR

Revenueperparcel

ChinaLogistics8

*Unlessotherwisestated,jectmanagementfeesandexcl.tax.

Regional

reviews

H1/2015=100

80

H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2

201520162017201820192020202120222023E2024E

ChinaLogistics9

Nation-widerentalindex

Steadyrentalgrowthforecastassupplylevelsabate

Satellite

Others

Firsttier

150

140

130

120

110

100

90

Baseperiod:2015H1

First-tiercities:Beijing,Shanghai,Guangzhou,Shenzhen

Satellitecities:Tianjin,Langfang,Jiaxing,Suzhou(incl.Kunshan,Taicang,Changshu,Zhangjiagang),Foshan,Dongguan,Huizhou

Othercities:Shenyang,Qingdao,Jinan,Wuxi,Nanjing,Ningbo,Hangzhou,Fuzhou,Xiamen,Xi’an,Chengdu,Chongqing,Kunming,Guiyang,Wuhan,Zhengzhou,Changsha

Source:SavillsResearch

mnsqm

Beijing

Shenyang

Jinan

Qingdao

Tianjin

Langfang

Shanghai

Hangzhou

GreaterSuzhou

Ningbo

Nanjing

Jiaxing

Changsha

Wuhan

Zhengzhou

Chengdu

Kunming

Guiyang

Xi'an

Chongqing

Shenzhen

Dongguan

Foshan

Huizhou

Guangzhou

Logistics

Keymarketcomparisonperformance

NorthernChinastruggleswithoversupply

1.2

1.0

0.8

0.6

0.4

0.2

0.0

Supply(LHS)Take-up(LHS)Vacancy(RHS)

60%

50%

40%

30%

20%

10%

0%

NorthernChina

Rent

RMBpsmpmth

61.0

30.9

33.4

23.1

28.8

25.8

Beijing

Tianjin

Langfang

Shenyang

Jinan

Qingdao

7.8%

25.6%

55.7%

11.8%

16.7%

8.4%

2.44

5.36

2.94

1.69

1.91

1.29

VacancyRate

StockMnsqm

Shenyang

?Shenyangreceived84,000sqmofnewsupplyin2022.

?ShenyangistheregionalcentreofNortheasternChinaandkeyhubinChina’sbeltandroadinitiative.

?Demandisdrivenbythecity’sroleasakeydistributionhubaswellastheneedsofecommerce,foodprocessingandequipmentmanufacturingcompanies.

NB:LangfangprojectsnearBDIA(BeijingDaxingInternationalAirport)areexcludedfromLangfangfiguresandincludedinBeijingfigures.ProjectsinQiheCounty,DezhouareincludedinJinanfigures.

Langfang

?Langfangreceivedrecordlevelsofsupplyin2022with756,200sqmaddedtothemarket,thelargestvolumeinNorthernChina.

?Removalofcross-provincialborderrestrictionscombinedwitharecoveryindemandandlowerrentscouldhelpenticetenantsawayfromBeijing.Nevertheless,itisgoingtobeanotheryearor

twobeforevacancyratescanfalltomoresustainablelevels.?TraditionallyGradeAprojectsfocusonGuangyangandAnci

districtsneartheBeijing–Tianjinexpressway.

Jinan

?Jinanreceived232,800sqmsupplyin2022.

?Shandong’skeyinlandcity,Jinan’sGradeAwarehousemarketpredominatelyfulfilstheneedsofconsumersfromthesurroundingregion.

?RestrictivecityplanninghaspushednewdevelopmenttoQiheinthewestwhereGLP,Prologisandotherwarehousedevelopershaveestablishedapresence.

Qingdao

?Majortenantsarelocalretailersfromhomeapplianceandfurnituremanufacturingindustries.

?Qingdaoreceivedalargeamountofsupplyduring2020-2021asthecity’sairportwasrelocatedacrossthebayinJiaozhou.Nevertheless,overallremainedsupply-demandbalance.

?Qingdao’s2022statusasmultimodaltransportationhuboftheChina-ShanghaiCooperationOrganization(SCO)Local

EconomicandTradeCooperationDemonstrationArea,isexpectedtoboostlogisticsdemandsignificantly.

ChinaLogistics11

Beijing

?Beijingreceived279,800sqmsupplyin2022.

?Strictbordercontrolcombinedwithastrongconsumermarket,hasspurredthelocaldemandforwarehousespaces.

?Asnewlyplannedlogisticshubs,BDIA&Pinggusubmarketsareanticipatedtoreceiveasurgeofnewsupplyinthecomingyears.

Source:SavillsResearch

Tianjin

?AsthelargestwarehousemarketinNorthernChina,Tianjinreceived589,400sqmofnewsupplyin2022.

?SubmarketsalongtheBeijing-Tianjinexpresswayarelikelytobebuoyedbytherelaxationofcovid-controlandtheexpectedreboundinintercitytransportationrelateddemand.

?Jizhou,anemergingsubmarket,willbetterservedemandinNorthernTianjinanddevelopstrongerconnectionwithBeijing.

Jiaxing

?Jiaxingreceived75,000sqmsupplyin2022withprojectsinPinghu&Jiashan.

?Demandcamefromstronglocalmanufacturingandup/downstreamindustries,aswellasspilloverrequirementsfromShanghai.

?ThemarkethasattractednotonlymaturedeveloperslikeESRandMapletree,butalsonewcomerslikeHilltoptoinvestinJiaxing.

Hangzhou

?Hangzhoureceived295,200sqmnewsupplyin2022focusingonthecity’smajorlogisticssubmarketXiaoshan.

?Asthenationalbaseoflivestreamecommerce,3PLsandecommerceremainedasHangzhou’smajortenants.

?Investheavilyinbuildingcrossborderecommerce.

Nanjing

?Nanjingreceived227,000sqmofnewsupplyin2022,withprojectslocatedinJiangning&Liuhe.

?StrongconsumerbaseinNanjing.

?Withsupplylevelshavingpeakedin2021occupancylevelsareanticipatedtograduallyimprovein2023.

Ningbo

?Ningboreceived356,500sqmofnewsupplyin2022,withprojectslocatedinCixi&Yuyaosubmarkets.

?Reducedcargoshippingresultedinvacancyratesrisingby5.7pptsin2022.

?Keylogisticsbasesarebeingdevelopedfortheairportcouriercentre,Beiluncross-borderecommercecentre,andYuyaodistributioncentre.

EasternChina

Suzhou

?Suzhouproper,Kunshan,Taicang,ChangshuandZhangjiagangtogetherformChina’sthebiggestlogisticsmarketinChina.

?Changshudoubleditsstockwithmorethan800,000sqmofnewsupplyin2022.

?Affordablerentsandestablishedindustryclusterscontinuetoattract

manufacturingcompaniesfromotherregionsbenefittingthelocalwarehousemarket.

ChinaLogistics12

Rent

RMBpsmpmth

49.6

36.1

32.4

31.9

35.4

31.5

ShanghaiSuzhou

Jiaxing

Ningbo

Hangzhou

Nanjing

10.6%

14.0%

31.0%

20.7%

13.0%

22.6%

6.80

8.19

4.08

2.34

3.32

2.32

VacancyRate

StockMnsqm

Source:SavillsResearch

NB:HangzhouincludessomeHuzhou&Shaoxingprojects

Shanghai

?QingpuandJinshanreceivednewprojectsin2022,attractingregionalfoodmanufacturers,expressdeliveryfirms,andpetrochemicalcompanies.

?Weakerconsumersentimentresultedindiminishingdemandandwithdrawalsbysomegeneralretailtenants(fastfashion&cosmetics),whilemanufacturingtenantsreassessedtheirwarehousingneedswithsomechoosingtoseekmoreaffordablepremisesclosertoproductioncentres.

?Despiteheadwinds,expressdeliveryfirmscontinuedtodrivegrowththroughouttheyear.

SouthernChina

Rent

RMBpsmpmth

42.9

60.8

43.9

35.0

35.6

GuangzhouShenzhen

DongguanFoshan

Huizhou

11.0%

1.2%

1.6%

3.0%

8.0%

2.55

0.50

2.26

2.68

1.06

VacancyRate

StockMnsqm

Source:SavillsResearch

Foshan

?Foshanreceived310,000sqmofnewsupplyin2022.

?Apartfromlocalmanufacturingfirms(homeapplianceandautoparts),demandcomespredominantlyfromcrossborderecommercefirms.

?TheeasternmodernlogisticsclusteredalongHighwayS55isakeyfocusoffuturedevelopmentandwillseenewsupplyhandedoverinthecomingyears.

Guangzhou

?Guangzhoureceived530,000sqmnewsupplyin2022.

?UnlikeShenzhenandDongguan,GuangzhoupossessesalargeindustriallandreservefromZengchengtoNansha,ensuringadequatesupplyinthecomingyears.

?Demandprimarilycomesfrom3PLsande-commercefirms.

Shenzhen

?YantianPortGLPParkhandedoveritsthirdphasein2022,adding60,000sqm(partiallybonded)supplytotheShenzhenmarket.

?AveragerentinShenzhenremainthehighestinthecountry.

?Extremelylimitedlandreserves,stubbornlylowvacancyratesandrecordsettingrentshavemeantthatnew

developmentsnowreachsixfloorshigh.Evenlowerqualitydevelopmentarealmostfullypre-leased.

ChinaLogistics13

Dongguan

?Dongguanreceived210,000sqmsupplyin2022.

?ArecoveryinthemanufacturingsectorandsizeablespilloverdemandfromShenzhenhelpedkeepDongguanvacancyratesatfrictionallevels.AveragerentsremainhigherthanGuangzhou,andonlysecondtoShenzhenintheregion.

Huizhou

?Huizhoureceived50,000sqmsupplyin2022.

?ThesmallerconsumerbasecomparedtoShenzhenandDongguanmeanthatwarehousingdemandpredominantlycomefromlocalmanufacturersinelectronicdevicesandautomobilesectors.

WesternChina

Guiyang

?Guiyangreceived380,000sqmofnewsupplyin2022.

?Non-bondedlogisticsmarketpredominantlyservedlocalneeds,similartoKunming.

?Guiyang’sfutureistiedtothebigdataindustry.Theimprovementoftechnologicalinnovationandintegrationofrealanddigitaleconomieswillhelptostimulaterelatedlogisticsdevelopmentandenhancelogisticsinfrastructureandservices.

Xi’an

?Xi’anreceived230,000sqmnewsupplyin2022,withafurther400,000sqmexpectedtocompletein

2023.

?Firmsarefiercelycompetingforspaceinthevicinityofthecity’sairport.

?DemandfromtheneweconomysectorslikeNEVs,buoyedleasingdemandintheETDZsubmarket.

Chengdu

?Demandandrentsremainedstablethroughouttheyeardespitecoviddisruptionandpoweroutages.

?Rapidgrowthfromthepharmaceuticalandhealthcaresectorsdrovedemandforcoldstorage.

?Relaxedcovidcontrols,coupledwithitslargeandgrowingpopulation,demandforqualitywarehousespaceinChengduisexpectedtogrowsignificantlyincomingyears.

Kunming

?Kunming’snon-bondedwarehousemarket

predominantlyserveslocalconsumersand

retailers.

?Despiterelativelystableoccupancyrates,landlordshaveloweredtheirrentalexpectationsgivenchallengingeconomicconditions.

?ApartfromlargeretailerslikeYunnanTobacco,leasingdemandalsocomesfromecommerce

platformslikeJD.com.

ChinaLogistics14

Rent

RMBpsmpmth

26.0

24.5

20.4

26.3

27.0

Xi’an

Chengdu

Chongqing

Kunming

Guiyang

18.5%

8.5%

22.9%

10.0%

11.2%

3.23

5.58

5.30

1.12

1.25

VacancyRate

StockMnsqm

Source:SavillsResearch

NB:SomeXianyangprojectsareincludedinXi’anfigures

SomeMeishan&DeyangprojectsareincludedinChengdufigures

Chongqing

?Chongqinghasbeensignificantlyaffectedbycovid

disruption,extremetemperaturesanddeterioratingtraderelations.

?Themarkethaswitnessedgrowingdemandfromconsumergoodsandpharmaceuticalfirms.AsthekeydistributionhubofChongqing,theWesternLogisticsPark(西部物流園)performedbetterthanothersubmarkets.

?SubmarketslikeChongqingAirportandWesternLogisticsParkwitnessedseverallandtransactionsin2022,pushingupsupplylevelsinthecomingyears.

CentralChina

Rent

RMBpsmpmth

26.1

22.5

30.1

ZhengzhouWuhan

Changsha

VacancyRate

32.2%

25.2%

10.4%

2.27

5.81

1.68

StockMnsqm

Source:SavillsResearch

NB:SomeKaifengprojectsareincludedinZhengzhoufigures;

SomeXiaogan&EzhouprojectsareincludedinWuhanfigures;

SomeXiangtanprojectsareincludedinChangshafigures

Changsha

?Changsharecordedverylimitedsupplyinthelasttwoyears.

?Changshaisacityofentertainmentandakeyconsumptioncentre,thisinadditiontoitscentrallocationconnectingeastandwest,aswellasnorthandsouthwillcontinuetodrivedemandforGradeAwarehousespace.

?Strongdemandandlimitedsupplyhaveensuredsteadyrentalgrowth.

ChinaLogistics15

Zhengzhou

?Zhengzhou’snon-bondedGradeAwarehousestockismainlylocatedintheEconomicTechnology&DevelopmentZoneandnearXinzhengAirport.

?Zhengzhoureceivednearly600,000sqmofsupplyin2022,pushingthevacancyrateto32.2%.

?Industrialupgradingisgeneratingnewdemandforsmarterlogisticsfacilities,aswellasmorecoldchainandcentralkitchenfacilities.

Wuhan

?Wuhanreceived887,000sqmofnewsupplyin2022.

?Themarketwilltaketimetoabsorbthisnewsupply,withvacancyratesalreadyelevatedandrentsalreadythelowestoutofthethreecentralcities.

?Growingdemandfromcoldchainoperatorsand3PLswillhelpboostdemandandhelprentsstabilizeinthecomingyears.

ChinaLogistics16

ChinaLogistics17

Source:SavillsResearch

US$bn

Industrialsectorstillhighlysoughtafter

Industrial-targetedfundsaccountforalmost80%offundraisingin2022

Theindustrial&logisticssectorsarehighlysought-afterassetclassesandhavebeensingledoutinrecentfundraisingactivitiesforspecialattention.Industrial&logisticsfundshaveaccountedformorethanhalfoffundraisinginthreeoutofthelastfouryears(theexceptionbeing2021whenSino-Oceanraisedtwosignificantofficefunds).In2022,thefigurereachedcloseto80%.

Newinvestorshavealsoenteredthemarket,withdomesticinvestorsanddevelopersdominatingthelogisticsmarketinthepasttwoyears.

30

25

20

15

10

5

0

Fundraisingbytargetsectors

DiversifiedHospitalityIndustrialLandOfficeResidentialRetail

200520062007200820092010201120122013201420152016201720182019202020212022

Source:SavillsResearch

Chartreferstofor-leaseGradeAnon-bondeddrywarehouseassets

7.50%

4.74%

6.77%5.04%

5.91%

5.33%

4.90%

7.15%

0.94%

4.41%

3.23%

6.54%

6.17%

5.10%

4.95%

3.64%

2.86%

2.63%

Others

GLP

VX

Mapletree

Blogis

ESR

Prologis

Goodman

DNE

Yupei

PingAn

36.80%

23.13%

ChinaLogistics18

Continuedexpansionorchangeinstrategy?

Top10marketshareshrinksasmoreinvestorsenterthemarket

0%10%20%30%40%50%60%70%80%90%100%

Thetop10developers'marketshareofChina’sGradeAwarehousestockfellfrom80.5%in2017to69.3%in2022.

WhileGLPremainsfirstintermsofareaundermanagement,severalsmallandmid-scaledevelopershaveexpandedaggressivelyoverthepastfiveyears.

VXgrewitsareaundermanagementtomorethan10millionsqm(7.5%ofthemarketandsecondbyscale).Nevertheless,theirpaceofexpansionhasslowedinrecentyearsaslandacquisitionbecomesmorechallengingandittakeslongertoleaseupnewlyconstructeddevelopments.MostofVX’sexpansionhappenedbefore2020withthefirmincreasinglyfocusingoncoldchain,automationandasset-lightoperations.Moreandmoredevelopersaresimilarlylookingtofocusontheoperationalefficiencyofexistingdevelopmentswhileworkingwithequitypartnerstodevelopasset-lightmodels.

2017

2022

21.56%

30.72%

Source:SavillsResearch

ChinaLogistics19

Yieldsbottomout

Investorstakethetemperatureofthemarketsinfirstandleadingsecond-tiercities

Logisticsassetcapratesofmajorcities,H1/2021-H2/2022

Investmentfacts

?NOIyieldsaresoftening,as

moresupply,includingportfolios,entersthemarket.

?Strictcovidcontrolsandglobalpoliticalandtradetensionshavedeterrednewinternationalinvestorshoweverthosewithasizeablepresenceinthemarketremainactive.

?China'sstableinterestrateenvironmentandlowinputcostscontinuetosupportmarketexpansionandanactiveinvestmentmarket.

7%

6%

5%

4%

7%

6%

5%

4%

7%

6%

5%

4%

Beijing

Suzhou

Zhuhai

Shanghai

Wuxi

Chengdu

Guangzhou

Dalian

Chongqing

Shenzhen

Shenyang

Kunming

Hangzhou

Tianjin

Xi’an

Nanjing

Fuzhou

Changsha

Ningbo

Xiamen

Wuhan

ChinaLogistics20

Outlook

Trendsfor2023

1

Post-CovidEra

Withgoodsoncemoreflowingfreely

acrossprovincialandmunicipal

boundaries,marketslikeLangfangand

Wuqing,whereprojectsservice

Beijing'sneeds,willseeaswift

reboundindemand.Theflipsideis

thatlandlordsinmajorconsumption

hubswithhigherrentscouldsee

tenantslookformoreaffordable

premisesfurtherfromthecity.

2

First-tiercitiessupply

UnlikeShanghaiandGuangzhou,

BeijingandShenzhenwhichhave

beenstarvedofnewsupplyformany

yearsnow,bothwitnessednew

projectsbeinghandedoverin2022.

Ascityplanninglookstobettermeet

marketdemands,emerging

submarketslikePKXandPinggu,as

wellasmaturesubmarketslikeShunyi