The cost of buying office space in the city of Guangzhou in the Chinese province of Guangdong has reached unprecedented highs, according to analysts based in the area.
Guangzhou’s population is estimated at close to 13 million and it lies just a few hours drive from Hong Kong, officially the most expensive city in the world in which to rent office space.
According to Colliers International, offices in Guangzhou cost around 32,000 Chinese yuan per square metre in the second quarter of 2012, which amounts to around £3,200. Rental costs are reckoned to have remained steady between April and the end of June.
Bryan Chen Houqiao, from Colliers’ local offices, told the South China Morning Post: “The increase was due to limited supply of available Grade A office buildings in Guangzhou. And there were also some landmark buildings on offer during the quarter.”
Among the major office space purchases completed in the recent months in the region was that which saw the Guangzhou Automobile Group acquire 45,600 sq m at the Poly D Plaza in the Tianhe district of its namesake city.
A number of in depth reports from real estate analysis firms from around the world have illustrated the growing prominence of Chinese cities as leading office space locations. CB Richard Ellis in fact recently reported that six of the world’s top ten most expensive office space markets are to be found in the Asia-Pacific region, including those in central Beijing and in Hong Kong.