Demand slowed but rents remained stable
Dear Valued Client,
In Q1 2022, demand slowed to 27,000 sq metres (288,000 sq feet), mainly in the Pazhou and Pearl River New City (PRNC) sub-markets. The sharp demand rebound in 2021 will likely taper off in 2022 due to Covid control measures, but we forecast net absorption will return to its pre-Covid level by the end of 2022. Vacancy was pushed up to 12.4% in Q1, and we expect it will head further northwards, affected by the new supply in Pazhou.
