I am currently negotiating* a commercial (office) lease in Beijing and I can honestly say the market is ridiculously overpriced.
I have put in offers on a number of buildings in Beijing's Financial Street district[1] and there is literally no space available. There are tons of brand new, A-grade office buildings but they are all owned and less than 20% occupied by China Life, People's Life Insurance Company of China and other monolithic State owned enterprises that let the space sit idle and they leave the lights on all day and all night.
The best office building in Beijing[2], was leasing office space at 300-400RMB/sqm per month less than 12 months ago and now they are turning you away if you offer less than 750RMB/sqm. The wierd thing is, some random domestic Chinese "investment" firm will actually pay that rent and happily move in.
I do believe there is a major correction due, but the government does control the media so its hard to say how hard or soft the landing will be and how much we will hear about it.
[1] http://en.wikipedia.org/wiki/Beijing_Financial_Street
[2] http://en.wikipedia.org/wiki/China_World_Trade_Center_Tower_...
* hence why I am posting anonymously.
I have put in offers on a number of buildings in Beijing's Financial Street district[1] and there is literally no space available. There are tons of brand new, A-grade office buildings but they are all owned and less than 20% occupied by China Life, People's Life Insurance Company of China and other monolithic State owned enterprises that let the space sit idle and they leave the lights on all day and all night.
The best office building in Beijing[2], was leasing office space at 300-400RMB/sqm per month less than 12 months ago and now they are turning you away if you offer less than 750RMB/sqm. The wierd thing is, some random domestic Chinese "investment" firm will actually pay that rent and happily move in.
I do believe there is a major correction due, but the government does control the media so its hard to say how hard or soft the landing will be and how much we will hear about it.
[1] http://en.wikipedia.org/wiki/Beijing_Financial_Street
[2] http://en.wikipedia.org/wiki/China_World_Trade_Center_Tower_...
* hence why I am posting anonymously.