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JLL’s sales and leasing agents are known for being the most creative and knowledgeable in the industry, having represented landlords and their landmark properties in more than 1,000 markets in 80 countries. We’ll help you meet your financial goals by taking a proactive approach to positioning your property, securing tenants or buyers and maximizing the return.

We have access to a worldwide network of colleagues who are specialists in every aspect of commercial real estate. To address rapidly changing demand for office, industrial, retail and residential space, we arm ourselves with research, local market data and trend information. When we represent your property, we’ll develop a marketing strategy that leverages multiple channels, new technologies and proven best practices to attract high-quality tenants or buyers.

Project Leasing

Earning successful returns on leased property means more than filling space. It begins with a firm grasp of what kind of space the most desirable tenants want and what they will pay for it. JLL project leasing team can execute a project leasing strategy for you that will entice the best tenants at the best lease terms and ensure you retain them for lasting value.

Project Sales​

Given the opportunity to represent your property, JLL project sales team will connect with local analysts and other brokers in the marketplace to develop a marketing plan that leverages multiple platforms, appropriate technologies and best practices to drive buyer interest. We help our landlord clients develop most accurate property positioning and customized comprehensive marketing strategy to ensure most suitable buyers and maximization of returns in the sales cycle.


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News and research

 

 

Demand from local financial firms and others supported a five-year high in Grade A net absorption; New malls entered with different positioning diversifying the retail market/china/en-gb/news/638/tianjin-fourth-quarter-real-estate-marketDemand from local financial firms and others supported a five-year high in Grade A net absorption; New malls entered with different positioning diversifying the retail market<h3><span style="font-size:18px;"><strong><em>​​According to JLL Tianjin's 2017 Property Review and 2018 Outlook</em></strong></span></h3><p><strong>Tianjin, 11 January 2018</strong> – "Although several <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office​</a> buildings were completed in 2017, the Tianjin market continued to absorb space and vacancy has posed less of a threat than some had feared" said Michael Hart, Managing Director of JLL Tianjin. In 4Q17, in the retail sector, phase IV of Yanlord Riverside Plaza opened and put more pressure on the existing <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail​</a> projects in Old Town submarket. Rebounded leasing demand in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank">logistics</a> sector in the last quarter of year-2017 helped vacancy dropped significantly. Several new residential projects started pre-sale in the quarter, however, the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">high-end residential​</a> market continued to be stable with low sales volume and housing price under the restrictive policy environment.</p><h3><strong>Office</strong></h3><p><strong>Grade A office contributed 125,000 sqm net absorption in 2017, amounting to the highest Grade A's annual net absorption in the past five years; and helped the total net absorption, which stood at 189,000 sqm</strong>. For the whole market this was a decline of 34.8% y-o-y, but the new supply only accounted for a third of the past year's. Demand was dominated by domestic finance companies, especially non-banking financial institutions and insurance companies. For instance, Ping An Insurance picked up around 7,000 sqm in Yanlord Riverside Plaza, a Grade A project completed in 4Q16. Taiping Insurance leased 5,000 sqm in Cofco Plaza. Professional services, following the finance companies, drove the leasing demand, accounting for 15.0% of the annual transaction volume.</p><p><strong>One Grade A project completed in 4Q17, Sino Ocean International Center, added about 53,000 sqm to the market</strong>. Therefore, two Grade A projects entered the market, adding 147,000 sqm of space in the whole of 2017, which brought total Grade A stock to around 971,000 sqm, an increase of 18.0% y-o-y. As there was strong demand in newly completed Grade A projects in 2H17, the Grade A vacancy saw a 4 percentage point decrease y-o-y by end-2017 to 48.3%. Only one Grade B project entered the market, adding around 40,000 sqm of space in the whole of 2017. Given that there was limited new supply and many newer, high-quality Grade B projects saw positive net-absorption in the year, Grade B vacancy declined 1.5 percentage points to 31.8%.</p><p><strong>Net effective rents continued to decline, falling 2.0% y-o-y, to RMB 92 per sqm per month on a chain-linked basis at the end of 2017</strong>. Grade A rents fell 1.5% y-o-y to RMB 103 per sqm per month. Sustained high market vacant space in Grade A market caused landlords to continuously lower rental expectations to find tenants to absorb it. Grade B rents dropped 2.3% y-o-y to RMB 87 per sqm per month.</p><p><strong>In 2018, 10 projects are expected to come online, which will add around 770,000 sqm and push the overall market stock to 3.6 million sqm and the vacancy to 43.0%</strong>. As a result of restrictions on winter commercial construction, some of the projects originally scheduled for completion in 1H18 would be delayed until 2H18. "Many new projects will complete outside the traditional submarkets, such as the Shuangying Plaza, the first completion in New Badali Area, which will provide more options for tenants who are looking to upgrade their office space outside the traditional business area," said Weiran Lv, Head of Markets JLL Tianjin.</p><h3><span lang="EN-US"><strong>Logistics</strong></span></h3><p><strong>Strong demand in the last quarter of this year helped annual net absorption in 2017 to stand at 262,000 sqm, which was still down 36.0% y-o-y</strong>. New leasing demand in the non-bonded market for the previous three quarters of the year were particularly slow. E-commerce and third-party logistics companies remained the most active in 2017, followed by retailers. Notable transactions were the logistics arm of a domestic e-commerce giant, which leased 120,000-sqm space across the city in 4Q17. Additionally, a domestic paper retailer leased around 50,000 in Wuqing to expand its presence in the year. Retailers and supporting logistics providers from Beijing were very active in seeking space in Beijing's surrounding areas such as Tianjin's Wuqing and Beichen. The Beijing government accelerated demolition of illegal structures across the city. The city was unable to accommodate this demand given the low vacancy and tight land supply.</p><p><strong>Four non-bonded projects entered the market, adding 157,000 sqm of space in the whole of 2017, which pushed the total non-bonded market stock to 2.8 million sqm, a 5.9% increase y-o-y</strong>. The bonded logistics market remained quiet with 750,000 sqm stock. Overall non-bonded vacancy dropped to 14.8% by end-4Q17, down 4.8 percentage points y-o-y, as there were high commitment rates in all the new projects located at prime locations which entered the market in 2017 and existing projects supported by demand from 3PLs and relocated tenants from Beijing.</p><p><strong>As the overall market vacancy rate declined and demand rebounded significantly in 4Q17, net effective rents in the non-bonded market rose 2.3% y-o-y on chain-linked base by end-2017 to RMB 0.93 per sqm per day.</strong> </p><p><strong>Looking forward, E-commerce, 3PLs and retailers, followed by the spill-over demand from Beijing, will remain the major market drivers in 2018</strong>. "E-commerce giants and retailers will continue to set up city and regional distribution centres in Tianjin in 2018 with the continuously increasing domestic consumption," noted <strong>William Gao, Head of Industrial for JLL Tianjin</strong>. Eight developers plan to expand their market share, and totalling 650,000 sqm new supply are scheduled for completion throughout the city in 2018, amounting to the highest annual new supply level in the past two years. While leasing demand will be strong, a large amount of new supply will push the vacancy rate up by 4.3 percentage points y-o-y to 19.1% by end-2018. Overall market rents should still see room for increases given the tight vacancy environment in the northern submarkets of Tianjin, such as Wuqing, Beichen and Ninghe.</p><h3><strong>Retail</strong></h3><p><strong>Despite the decrease in new retail supply, leasing demand in 2017 remained robust, resulting in the whole year's net absorption reaching 390,000 sqm, lower by only 5.0% y-o-y</strong>. Most demand continued to come from the F&B, child-related and service sectors. For example, Super Boom Burger leased 400 sqm in Heping Joy City, Tomato Art School opened a 500-sqm store in R&F Square and Xueersi School continued to expand in most community malls. "The tenant mix of shopping malls was becoming more diverse and more cultural elements were appearing in retail projects" said <strong>Sunny Yin, Head of Retail JLL Tianjin</strong>. Several bookstores combined with cafés or handicraft stores in shopping malls during the year and attracted shoppers to stay longer, for example Guangzhou Book Centre, Jade Way Space and Sisyphe Bookstore.</p><p><strong>By end-2017, two new malls and a new phase of an existing mall had entered the market, adding 309,000 sqm of space</strong>. A total of 71.0% of this was in core submarkets, including TeeMall in Heping Road and Yanlord Riverside Plaza Phase IV in Old Town. Another mall, Global Mall Tianjin, was located on the city fringe, catering to daily shopping demand by residents and office workers nearby. All three malls entered next to existing projects, which increased the competitive environment in the market. The new completions saw a decline of 35.3% y-o-y compared to last year, this combined with the robust demand, pushed the vacancy rate down to 11.6%, a decrease of a 0.7 percentage point q-o-q and 3.2 percentage points y-o-y.</p><p><strong>Strong leasing demand drove net-effective rents up to RMB 11.7 per sqm per day, an increase of 0.9% q-o-q and 2.6% y-o-y</strong>. Benefitting from good locations, easy access and active tenant adjustment by landlords, most shopping malls in core submarkets performed well with falling vacancy rates and rising foot traffic. These were the main drivers of the rental increases. Adding categories that could afford to pay higher rents, such as fashion and beauty retailers in mature malls, including Aqua City and Tianjin Joy City, were other reasons for the rental increases.</p><p><strong>Looking forward, five new projects are expected to enter the market in 2018, including two large malls, Luneng CC Plaza and L+Mall, together with another three community malls with different features</strong>. We forecast that future leasing demand and new supply will increase at the same pace, which will keep the vacancy rate on a downward trend. Also, rents should grow at a stable pace due to the increasing competition in both core and non-core submarkets. </p><h3><strong>High-end Residential</strong></h3><p><strong>The whole 2017 residential market was largely impacted by the housing curb policies</strong>. The restriction for purchasing a second house for non-local people and a third house for local families took effect in 2Q17. This, combined with several banks that stopped offering discounts on mortgage rates, pushed transaction volume down to a 10-year low. High-end residential market sales volume stood at 809 units in 4Q17, an increase of 33.3% and a large drop of 65.4% y-o-y. Total transaction volume in 2017 saw 65.4% decline y-o-y.</p><p><strong>A total of 1,540 new units were launched in the quarter, an increase of 126.5% q-o-q and a decrease of 22.4% y-o-y</strong>. Notable projects include Jinmao Palace in Haihe Riverside submarket and City Impression developed by Gemdale in Water Park submarket. Jinmao Palace, a new project with a nice river view and easy accessibility to the subway line launched 276 units at a high average price of RMB 51,880 per sqm. Inventory levels by end-2017 in the overall high-end market saw a mild increase at 11.8% y-o-y. </p><p><strong>High-end housing price continued to rise at 7.6% y-o-y by end-2017 despite the housing curb policy, mainly because of the limited new supply and tight inventory level</strong>.</p><p><strong>We forecast that the housing policy will remain tight during 2018, which is expected to help the housing market remain stable in terms of price and sales volume</strong>. "However, hot land market showed the developers' confidence on investing in Tianjin due to the local upgrading demand to continue to be solid," noted by <strong>Chelsea Cai, Head of Research for JLL Tianjin</strong>. The leasing market is expected to supported by the government but the impact may only be seen in the long run.</p><p style="text-align:center;">- ends -</p><p style="text-align:center;"><br></p><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/tianjin" target="_blank">JLL Tianjin Page​</a></em><br><p><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/news" style="line-height:1.6;">JLL News</a><br></em><em style="line-height:1.6;">>>>Read more about​ </em><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research</em></a>​​​</p><p style="text-align:center;"><br></p><p><span class="ms-rteFontSize-2 ms-rteThemeForeColor-5-0"><strong><em>About JLL</em></strong></span><br>JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit <a href="/" target="_blank" rel="nofollow">http://www.jll.com</a>.</p><p>JLL has over 50 years of experience in Asia Pacific, with 36,900 employees operating in 96 offices in 16 countries across the region. The firm won the 'World's Best' and 'Best in Asia Pacific' International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics.  <a href="file://192.168.2.100/project/JLL/Marketing/WEBSITE%20CONTENT/201712/20171212/www.ap.jll.com" rel="nofollow" target="_blank">www.ap.jll.com</a>.</p><p>In Greater China, the firm was named 'Best Property Consultancy in China' at the International Property Awards Asia Pacific 2016, and has more than 2,200 professionals and 14,000 on-site staff providing quality real estate advice and services in over 80 cities across the country. <a href="file://192.168.2.100/project/JLL/Marketing/WEBSITE%20CONTENT/201712/20171212/www.joneslanglasalle.com.cn" rel="nofollow" target="_blank">www.joneslanglasalle.com.cn</a>​</p>0x0100E81015D9D08198458B498FF948D658F90052B0972AFC77B94093C478C1B5B47C88
Financial Street rents shoot up as demand in the area continues to prove strong; six new retail projects mark largest Urban supply quarter in last 13 years/china/en-gb/news/639/beijing-fourth-2017-real-estate-market-enFinancial Street rents shoot up as demand in the area continues to prove strong; six new retail projects mark largest Urban supply quarter in last 13 years<h3>​<span style="font-size:18px;"><strong><em>​According to JLL Beijing's 2017 Fourth Quarter Property Review and 2018 Outlook</em></strong></span></h3><p><strong>Beijing, 11 January 2018</strong> – "Strength from domestic firms helped new projects fill up, reaffirming that pent-up demand remains in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/office" target="_blank">office</a> market," said Julien Zhang, Managing Director for JLL North China. Meanwhile, in the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/retail" target="_blank">retail</a> sector, 4Q17 was a peak supply quarter with six new projects coming online, including the highly anticipated WF Central in Wangfujing. Domestic investors remained the dominant source of capital demand, although a portfolio deal led a foreign investor to acquire a core office asset in a rare turn of events. Third party logistics firms continued to drive demand in the logistics market. In the <a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/residential" target="_blank">residential</a> market, the luxury apartment sales volume increased in the quarter, after strong performance was recorded at new and recent projects due to the price caps put in place by local government. Strong demand from corporate travelers and tourists give hotels a boost.</p><h3><strong>Grade A Office</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Office</p></td><td class="ms-rteTable-default" style="width:50%;"><p>4Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>7.1%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>430,862 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.6% q-o-q</p></td></tr></tbody></table><p><span lang="EN-US"> </span></p><p><span lang="EN-US"></span><strong>Net absorption was strong in the quarter, as new completions entered the market with significant pre-commitment</strong>. Demand was dominated by domestic finance and IT firms, as foreign companies remained slow to expand in the market. Several IT companies started to consider recent completions in Olympic Area as an alternative to Zhongguancun, where large, vacant spaces were lacking.</p><p><strong>Two new projects opened in Olympic Area in 4Q17, bringing the total number of new projects to 10 for the year</strong>. China Overseas Fortune Centre was half-committed and received strong overflow demand from IT tenants who were unable to find space in the tight Zhongguancun submarket. Nearby, Hengyi Building entered the market more than half-committed. Due to the new supply, Grade A vacancy increased slightly to rest at 7.1% by year-end.</p><p><strong>Financial Street rents climbed 3.2% q-o-q, recording new highs after rising for a thirty-fifth consecutive quarter</strong>. Due to the unique advantages of being close to national regulators, finance firms with high affordability continue to prove how important the area is for business. By contrast, CBD rents were flat as existing buildings were in competition with future buildings.</p><p><strong>2018 Outlook: Domestic firms are set to remain the dominant source of demand for the office market</strong>. Meanwhile, rents are expected to follow similar trajectories to 2017, with CBD and Finance Street rents continuing to diverge. "Over the coming months, we will also see co-working operators continuing to be highly active in the market, particularly as operators push forward with fast-growth strategies across the city," said Eric Hirsch, Head of Markets for JLL North China. "This new layer of occupiers adds another dimension to the demand trends that we have traditionally followed."</p><h3><strong>Investments</strong></h3><p><strong>It was a relatively busy year for investment in Beijing, with nearly 20 major deals contributing to a transaction volume of RMB 24 billion in 2017</strong>. In the quarter, notable deals included the sale of W Hotel along Chang'an Avenue by COFCO to Sichuan-based investment fund Tianfu Group for RMB 2 billion, and a China Merchants portfolio deal. Purchased by PAG Asia, the portfolio included an office asset in a core location of Beijing and served as one of the few deals in the city to be transacted by a foreign investor in recent years.</p><p><strong>Domestic investors continued to dominate the market in 2017, as stricter capital controls pushed more mainland Chinese investors to actively search Beijing for opportunities</strong>. Interest in convertible properties was high among prospective buyers during the year. As aging stock in Beijing provides new scope for value-add plays, many investors are seeking suitable retail or hotel assets to convert to office space in a bid to target higher gains.</p><p><strong>2018 Outlook: Beijing core area opportunities have become a rarity in the market, but much more valuable to investors</strong>. Interest in office properties is especially high, as office demand and potential for high rental returns remains strong. Apart from core office assets, we also see rising interest from both institutional investors and self-use buyers in business parks in mature areas such as Zhongguancun and Wangjing, which benefit from convenient transport networks and ample amenities," said Michael Wang, Head of Capital Markets for JLL North China. "These opportunities will no doubt support the investment market in Beijing over the next 12 months."</p><h3><strong>Prime Retail</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Retail </p></td><td class="ms-rteTable-default" style="width:50%;"><p>4Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>5.8%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply*</p></td><td class="ms-rteTable-default"><p>865,400 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.7% q-o-q</p></td></tr></tbody></table><p><em class="ms-rteThemeForeColor-1-4">Note: Prime Retail refers to the Urban market. *New Supply is inclusive of the Suburban market. </em></p><p><strong>Flagship openings were popular at the newly opened and highly anticipated WF Central project in Wangfujing</strong>. Lingerie retailer Victoria's Secret opened its three-floor Asia flagship, making it the first store in Beijing to provide access to full product lines. Also at the project, Pandora opened its global flagship store, and Superdry opened its China flagship store.<br></p><p><strong>It was a peak supply quarter, with 4Q17 marking the largest quarterly supply for the Urban market since 2004 – closing out the largest annual Urban supply year since 2010</strong>. A total of six new projects entered the market in the quarter, adding 395,400 sqm of Urban supply and 470,000 sqm of Suburban supply. Key openings in 4Q17 included the WF Central project along the busy Wangfujing pedestrian street and MixC Miyun, the first large-scale shopping mall in the far north of Beijing. WF Central opened with high commitment, while MixC Miyun was fully committed with the majority of its tenants entering Miyun for the first time. </p><p><strong>The slow growth environment persisted in the quarter</strong>. Urban rental growth remained slow, but recorded a slight increase from the previous quarter as landlords of market-leading projects had greater bargaining power; rents grew 0.7% q-o-q and 1.7% y-o-y. The Suburban market continued to outpace the Urban market, registering 0.9% growth q-o-q and 3.2% growth y-o-y. </p><p><strong>2018 Outlook: New supply will start to shift its focus from the Urban market to the Suburban market over the next 12 months</strong>. By end-2018, new Suburban supply will make up the majority of new supply (58%), while new Urban supply is set to contribute to less than half of new supply (42%). By 2019, new Suburban supply will dominate new supply (at nearly 90%). Landlords of new projects will continue to seek F&B and children's brands, as these tenants remain popular, especially for malls in the suburbs which cater to young families. "At the same time, premium cosmetics will be an area for growth at destination and regional malls," said <strong>Zoe Yang, Head of Retail, Tenant Representative for JLL in Beijing.</strong> "We are also likely to see new retail supermarkets eyeing malls, particularly as the most competitive players in this rising sector look to upgrade from low-end projects."</p><h3><strong>Industrial</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Industrial</p></td><td class="ms-rteTable-default" style="width:50%;"><p>4Q17</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>1.7%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>0 sqm</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.2% q-o-q</p></td></tr></tbody></table><p><br><strong>E-commerce firms and supporting 3PLs continued to be active in the quarter</strong>. However, the limited availability of large space in mature submarkets held back demand. Meanwhile, tenants of low-end projects were active in seeking space as the government accelerated demolition of unlicensed facilities across the city. Beijing was unable to accommodate this demand given its low vacancy rates and tight land supply, resulting in many transactions in surrounding areas such as Tianjin's Wuqing and Beichen submarkets. </p><p><strong>Due to restrictions on winter commercial construction, two projects originally scheduled for completion in 4Q17 were delayed to 1H18</strong>. With no new projects entering the market, the tight vacancy rate remained unchanged at 1.7%, leaving very limited space available for lease. Total logistics stock was stable at 2 million sqm.</p><p><strong>Landlords of projects in mature submarkets retained their bargaining power to increase rents due to the tight-vacancy environment</strong>. Beijing Airport Logistics Park saw the largest rental increase of 2.2% q-o-q, helping to push up overall rents 1.2% on a like-for-like basis. Meanwhile, no en bloc sale transactions were recorded in the quarter, but experienced developers remained interested in expanding their presence in the market by purchasing<a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/industrial-and-logistics" target="_blank"> industrial</a> facilities from local landlords. </p><p><strong>2018 Outlook: Six projects totaling 370,000 sqm are scheduled for completion in 2018 and will amount to the highest annual new supply level since 2010</strong>. Despite the large pipeline, pent-up demand from e-commerce giants and 3PLs, as well as tenants in low-end projects looking to upgrade, is expected to help new projects fill up throughout the year. Despite the surge in new supply, pent-up demand in the market is expected to keep vacancy at bay. This will allow headroom for moderate rental growth over the coming months."</p><h3><strong>High-end Residential</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Residential</p></td><td class="ms-rteTable-default" style="width:50%;"><p>4Q17</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>Serviced Apartments</strong></p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>Vacancy</p></td><td class="ms-rteTable-default"><p>10.9%</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>195 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.4% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>Luxury Apartments</strong> </p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>772 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>-0.7% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>1.2% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p><strong>High-end Villas</strong></p></td><td class="ms-rteTable-default"><p>​</p></td></tr><tr><td class="ms-rteTable-default"><p>New Supply</p></td><td class="ms-rteTable-default"><p>129 units</p></td></tr><tr><td class="ms-rteTable-default"><p>Capital Values Growth</p></td><td class="ms-rteTable-default"><p>0.9% q-o-q</p></td></tr><tr><td class="ms-rteTable-default"><p>Rental Growth</p></td><td class="ms-rteTable-default"><p>0.6% q-o-q</p></td></tr></tbody></table><p><br><strong>The luxury apartment sales volume increased 76.5% q-o-q in 4Q17, after strong performance was recorded at many new and recent projects due to lower prices resulting from the price caps implemented by local government</strong>. Meanwhile, limited new supply pushed high-end villa sales down 15.4% q-o-q. Housing demand was restrained further as the tight-policy environment persisted in the quarter, with banks in Beijing increasing mortgage rates by 10-20% over the benchmark lending rate for both primary and secondary homebuyers. </p><p><strong>Housing authorities continued to urge developers to launch projects: 772 luxury apartment units were released in 4Q17.</strong> Meanwhile, six villa projects released 129 units in the market. One new serviced apartment project with 195 units, Ascott Riverside Garden Beijing, fully entered the market. Despite its outer location by the Fourth Ring Road, the project reached high occupancy under a very competitive rental strategy.</p><p><strong>Primary capital values growth for luxury apartments remained negative, registering -0.7% q-o-q as prices continued to be restricted by policy</strong>. Meanwhile, stable demand and limited supply supported modest growth for primary high-end villa capital values (0.9% q-o-q). Due to steady leasing demand, rents for luxury apartments and high-end villas inched up 1.2% q-o-q and 0.6% q-o-q, respectively.</p><p><strong>2018 Outlook: Under steady supply and limited price growth, the luxury apartment sales volume is likely to remain stable in the year</strong>. Despite price caps set by the local government, supply should be steady as authorities continue to urge developers to launch new projects in the market. "Looking ahead, however, less land supply is expected for the high-end residential market as the local government focuses on developing the residential rental market and joint-ownership housing projects over the next five years," said Joe Zhou, Head of Research for JLL China. "At the same time, central government support, for several large REITs and financial derivatives related to long-term residential rental projects, is projected to further support the residential rental market."</p><h3><strong>Hotels​</strong></h3><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:50%;"><p>Hotels</p></td><td class="ms-rteTable-default" style="width:50%;"><p>YTD November 2017</p></td></tr><tr><td class="ms-rteTable-default"><p>Occupancy</p></td><td class="ms-rteTable-default"><p>74.4%</p></td></tr><tr><td class="ms-rteTable-default"><p>ADR*</p></td><td class="ms-rteTable-default"><p>1,030.8</p></td></tr><tr><td class="ms-rteTable-default"><p>RevPAR</p></td><td class="ms-rteTable-default"><p>767</p></td></tr></tbody></table><p><em class="ms-rteThemeForeColor-1-4">Note: Hotels refers to the upscale hotel market. *ADR inclusive of service charge.</em> </p><p><strong>Increasing demand from corporate travelers and tourists coupled with no new supply in the quarter helped boost hotel performance in 4Q17</strong>. As at YTD November, significant RevPAR growth of 4.0% y-o-y was recorded, driven mainly by the higher average daily rate (ADR), which increased 1.2% to RMB 1,030.8. The gains were recorded as overall occupancy remained high at 74.4%, up 2.0 percentage points y-o-y.</p><p><strong>Despite no new supply in the quarter and a relatively limited year of supply, 2017 witnessed the prestigious Bulgari Hotel Beijing open in Third Embassy Area</strong>. With 119 rooms, Bulgari<a href="http://www.joneslanglasalle.com.cn/china/en-gb/services/property-types/hotels-hospitality" target="_blank"> Hotel​</a> Beijing opened in September, serving as the high-end brand's foray into China and fourth luxury apartment following locations in London, Bali, and Milan. Apart from Bulgari Hotel Beijing, Hotel Jen and Pan Pacific opened in the year, adding a total of 789 hotel rooms to the market in 2017, down from 1,479 hotel rooms in 2016. </p><p><strong>Over the next 12 months, new supply is expected to surge as 13 hotels are set to open, more than tripling the number of rooms in 2017 with 2,840 rooms coming to the market in 2018</strong>. Notable hotel openings include Puxuan Hotel (116 rooms) and Mandarin Oriental Hotel Wangfujing (74 rooms). Unlike previous years, the majority of new supply will be located in emerging business clusters or suburban areas such as Shunyi, Fengtai, Changping, and Wangjing (including Marriot Hotel Changping and Hyatt Regency Hotel Wangjing). </p><p><strong>2018 Outlook: The trading performance of upscale hotels is expected to further rise in 2018, as demand from tourists is expected to remain high</strong>. Despite the large pipeline, many new openings will be outside of traditional business clusters and the city centre, allowing the ADR of existing upscale hotels to climb further. At the same time, new hotels in the outer areas are also expected to record relatively high ADRs in spite of their outer locations due to their high-end positioning. Also, some developers are upgrading old hotels or converting poorly performing hotel properties in the city center to office, which is expected to boost the overall performance of the market. "Under the stable demand and dispersed future supply, we expect hotel trading performance to steadily rise in 2018, said Adela Zu, Vice President of Hotels & Hospitality for JLL in Beijing. "We also see the hotel investment market becoming more active in recent years, which demonstrates growing interest in Beijing from investors."</p><p style="text-align:center;">- ends -</p><p style="text-align:center;"><br></p><em style="line-height:1.6;">>>>Read more about <a href="http://www.joneslanglasalle.com.cn/china/en-gb/citymarkets/beijing" target="_blank">JLL Beijing Page​</a></em><br><p><em style="line-height:1.6;">>>>Read more about </em><em style="line-height:1.6;"><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/news" style="line-height:1.6;">JLL News</a><br></em><em style="line-height:1.6;">>>>Read more about​ </em><a target="_blank" href="http://www.joneslanglasalle.com.cn/china/en-gb/research" style="line-height:1.6;"><em>JLL Research</em></a>​​​</p><p style="text-align:center;"><br></p><p><span class="ms-rteFontSize-2 ms-rteThemeForeColor-5-0"><strong><em>About JLL</em></strong></span><br>JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit <a href="/" target="_blank" rel="nofollow">http://www.jll.com</a>.</p><p>JLL has over 50 years of experience in Asia Pacific, with 36,900 employees operating in 96 offices in 16 countries across the region. The firm won the 'World's Best' and 'Best in Asia Pacific' International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics.  <a href="file://192.168.2.100/project/JLL/Marketing/WEBSITE%20CONTENT/201712/20171212/www.ap.jll.com" rel="nofollow" target="_blank">www.ap.jll.com</a>.</p><p>In Greater China, the firm was named 'Best Property Consultancy in China' at the International Property Awards Asia Pacific 2016, and has more than 2,200 professionals and 14,000 on-site staff providing quality real estate advice and services in over 80 cities across the country. <a href="file://192.168.2.100/project/JLL/Marketing/WEBSITE%20CONTENT/201712/20171212/www.joneslanglasalle.com.cn" rel="nofollow" target="_blank">www.joneslanglasalle.com.cn</a>​</p>0x0100E81015D9D08198458B498FF948D658F90052B0972AFC77B94093C478C1B5B47C88

 

 

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