Newly completed luxurious or high-end condominiums in CBD or Chaoyang Park area drove rental up by almost 8% to 12% in comparison to 2006 figures; and villas in Shunyi district has also enjoyed a gradual gain of 10% to 15% due to the high occupancy rates in populous villas such as Yosemite and Grandhills.There is no change in price for those lower or mid-level range apartments.

Despite there was a 3% hike in vacancy rate of office space, which registers an oversupply of 14% at the fourth quarter of 2007, both the commercial and residential sectors have expanded and the average rentals have grown as well.

Due to the demand caused by Olympic Games, rents for ground and first floor retail space have increased significantly too.However, Beijing Serviced Apartment market has benefited most from the upcoming Olympic Games among the luxury residential leasing market sectors.? Serviced Apartment rents rose by approximately 6% q-o-q to RMB 230 psm per month. ?Average rental of industrial property was RMB 50 psm per month, an increase of 5% y-o-y.The price of industrial land was approximately RMB 1200 psm, slightly up 7% y-o-y.

We also observe there is no sufficient change in housing budget set by BI’s existing corporate clients due to the consistent flow of foreign investment.However, there is a new trend where companies are introducing “semi-expatriate packages” and hiring foreigners on local terms that has a lower housing subsidizes.

Bel-property Data 2007/2008

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