Grade-A office sales rise in Guangzhou

Sales of Grade-A offices in Guangzhou, the capital of Guangdong province, put in a strong performance in the third quarter, a report revealed.

Following strong demand from investors and users, the price of newly opened Grade-A offices in Zhujiang New Town, the CBD area in Guangzhou, is expected to reach a record high of 60,000 yuan ($9,800) per square meter, a report by international property consultant Colliers International found.

In the third quarter, the price for Grade-A offices hit 33,796 yuan per square meter, according to the report.

However, rentals for major domestic manufacturers and financial organizations will remain low in the following months due to a slowdown in the global economy, said Lin Minghan, general manager of the Colliers Internaitonal (Guangzhou).

"Demand from retailers and IT sectors, which have seen business growth in the first half of the year, for high-end offices will become stronger," Lin said.

The vacancy rate for Grade-A offices in the Zhujiang New Town will increase sharply as about 570,000 square meters of new offices are scheduled to open in fourth quarter and early next year, according to the report.