2021-08-04-第一太平戴维斯-福州写字楼_2021年上半年_2页_1mb

Fuzhou Office Market Summary

Economic Context

Fuzhou's economy showed strong growth in 2021, with the region's GDP increasing by 18% in the first quarter, reaching 223.83 billion yuan. The service industry, including internet-related, science and technology, and business services, contributed significantly, with a collective value growth exceeding 65% year-over-year in the first two months. This economic vitality supported overall market positivity.

Current Market Overview

No new office supply entered the market in 2021's first half, maintaining a total inventory of 141.5 million square meters. Occupancy rates improved, with the average reducing 3.5 percentage points to 21.8% and net absorption reaching 50,174 square meters. Rents increased slightly, rebounding by 0.4% to 102.4 yuan per square meter per month, driven by heightened demand, particularly in sub-markets like Jinjiang and Minjiang North.

Market Trends and Details

• Demand and Leases: Strong demand was fueled by service industry growth, with several high-profile lease transactions, such as Taikang Life renting 4,000 sqm in the Financial Street sub-market. Sub-markets like Jinjiang and Minjiang North accounted for a large portion of net absorption.
• Key Data: Occupancy and rent indices showed improvement, indicating a positive market sentiment despite the lingering COVID-19 effects.

Future Outlook

Projections indicate limited new supply expected in the second half of 2021, with only around 85,998 sqm planned. Rising service sector demand is anticipated to sustain market absorption and potentially drive further rent increases, reinforcing overall market stability.