Xiong’an New Area - toddle towards a master-planned office market
Dear Valued Client,
The strength of forthcoming policies and pace of industrial development will be the greatest influence on the future trend of Xiong'an New Area's office market. Here we summarized our three core scenarios as the market reflects different environments.
Positive market environment: Passing a series of breakthrough policies, including industrial and talent relocation support, should speed up the relocation of non-capital functions and central state-owned enterprises' high-quality industrial resources to Xiong’an. With a growing industrial cluster, it is easier to attract high-quality enterprises. This sustainable demand supports the market rent.
Neutral market environment: There is no breakthrough industrial support policy, and the relocation progress of non-capital functions and high-quality industrial resources of central state-owned enterprises to Xiong’an proceeds slowly. Incubating industries from scratch will likely take a long time, with the office market stabilizing gradually as the industry cluster take shapes
Negative market environment: No additional industrial incentive policies come to fruition, the relocation of non-capital functions and quality industrial resources of central state-owned enterprises to land in Xiong’an New Area is not executed efficiently, policy support in the new are wanes and restrictions increase while industrial development see less encouragement. In this case, enterprises need to break through policy boundaries on their own, which we think will significantly complicate office leasing activity, which may cause rents may go down and remain low through 2025.
In conclusion, whether it is Zhangjiang or Lize, the core factor is a sustainable industrial revitalization. With a high-quality industrial foundation, we can promote the stable and healthy development of the office market in the Xiong’an New Area. This investment in infrastructure, combined with the favorable industrial policy is creating a fertile ground for the long-term development of high-quality industries. The next three to five years are not only a strategic period of development for the Xiong’an New Area, they are also a key breakthrough period for the Xiong’an New Area office market to transform from 0 to 1.