‘Recessionproof’ Huizhou records smallest drop in rents in first six months, emerges as Greater Bay Area’s most resilient office market
- Huizhou recorded a decline of 5.5 per cent over the period when compared with last year, Savills says
- City’s vacancy rate was also the lowest among Greater Bay Area cities by the end of June
Huizhou, which is included in Beijing’s Greater Bay Area development zone, was its most resilient office market over the first half of this year, according to property services firm Savills.
The development zone, which includes Hong Kong, Macau and nine mainland Chinese cities, has been battered by the coronavirus outbreak and escalating tensions between China and the United States.
A set of indicators tracked by Savills to monitor changes in rent across the development zone cities pointed to the devastating impact of the coronavirus pandemic. The Savills rental index tracking all the office markets in the cluster tumbled 4.1 per cent to 159.7.
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Of these, Huizhou recorded the smallest drop in rents, which on average stood at 61.2 yuan (US$8.74) per square metre per month, a decline of 5.5 per cent over the six-month period when compared with last year.
“Huizhou’s office market has turned out to be relatively stable,” said Carlby Xie, director of Savills Southern China Research. “In general, the economic slowdown has dealt a blow to the Greater Bay Area cities, but Huizhou’s office segment appears to be recessionproof.”
The city’s vacancy rate, at 26 per cent to 28 per cent, was also the lowest among the bay area plan cities by the end of June. Huizhou has a population of about 5 million and has an office space supply of 1.2 million square metres.