No pain, no gain: slowdown repositions market for future growth
North China Commercial Real Estate Market Insights: 2019 Overview & 2020 Outlook
By detailing market trends across the region for 2019 and providing a glimpse into 2020, we aim to serve our clients with the knowledge required to fight the odds and secure more wins in the coming year and beyond.
The economy has been hit hard for all of us in 2019. In particular, the slow-growth environment – dotted with uncertainties – has made for an arduous year in North China, especially as we narrow the conversation to focus on commercial real estate. In Beijing, several market indicators hit decade lows, while Tianjin, Qingdao, and Shenyang suffered further increases to vacancy as demand weakened. After several tough months, there is a silver lining, however. Stakeholders are more prepared for the road ahead into 2020, having experienced the difficult times throughout 2019.
The year 2020 will see more challenges, presenting a key moment for change. Market strategies such as further rent adjustments or additional incentives will be necessary, but can only provide short-term solutions. Therefore, innovative new technologies to improve service quality are needed to overcome both cyclical and structural obstacles. These changes will lead to more suitable corrections for markets across North China and are expected to better reposition them for the future.