We expect the Beijing market to remain stable and expect rents to continue rising. We also expect high-quality warehouse space demand to strengthen, especially demand for storage of consumer goods for distribution centers.
As new supply in the Beijing market is very limited, average rents across Beijing continue to be the most expensive in China. The average rent stood at RMB52.6 (USD7.5) per sq meter per month. High demand andlimited supply in Beijing's logistics market resulted in continued spillover into the Langfang and Tianjin markets. The Langfang market experienced strong demand due to its proximity to Beijing, helping drive a small rental increase HOH, even during COVID-19. As the largest logistics market in North China, Tianjin's overall built stock is set to exceed 5 million sq meters (54 million sq feet) this year. The vacancy rate in Tianjin has increased for three consecutive years.