Guangzhou saw 1.09 million newly registered domestic and foreign funded companies in the first half of 2018 (up 18.2 percent year on year), which led to a strong demand for Grade A office.

While the supply was limited last year, the launch of new projects is expected to peak from 2019 to 2021 and bring more than 2.55 million square meter new supply, according to Savills, an international property consulting company. Most new projects are located at the emerging business centers, such as Pazhou and the International Finance City in Huangpu.

It is also estimated to slow down the rapid rent increase of Grade A office in the coming years.

Meanwhile, the vacancy rate of serviced apartment decreased 3.6 percent to 1.4 percent and pushed the average rent up 8.8 percent to 199.4 yuan per sqm per month in 2018.

It’s anticipated that the serviced apartment market will continuously grow in 2019. It will see new supply which will add the total storage up to 4000. The new serviced apartment projects will be mainly located in Tianhe.