The Greater Bay Area’s long-running boom in commercial real estate is set to continue and expand beyond the main hubs of Shenzhen and Guangzhou, according to a latest report by international consultancy JLL.
This is despite a surge in supply coming onto the market, especially in Shenzhen, where the Grade A office market is expected to almost double, from around 7 million sqm this year to 14 million sqm over the next five years, according to JLL.
The bulk of cross-border real estate investments in the region to date have largely been restricted to Hong Kong, Guangzhou and Shenzhen. These three attracted 85% percent of the total since 2009, JLL says. However, the maturing of investments into the region’s transportation infrastructure will spread this flow to a wider catchment area going forward.