Jones Lange LaSalle Property Market Monitor for China is Eye Opening

Historically when reading through the various real estate firm reports, the news was all good.

Geared for landlords and investors, the news of rental rates on the rise, occupancy rates on the rise, and new supply having little impact on pricing (there were just so many entrants coming into the market).

However, things have taken a different tone.. and a different formate.

Now, as seen through the recent  Jones Lange LaSalle Property Market Monitor for China, the graphs are gone, the anlaysis is gone, and in its place a large focus on what the government is doing to shore up the market has taken its place.

For many of my friends in the industry, the tone reflects this.  While enjoying my turkey last week, I was speaking to a member of the industry who was focused on the commercial side and all he needed to say was “rents are off 20-30% over the last 2 months”… I knew the rest.

Being a landlord 2 years ago meant being able to essentially name your price, and eventually (within a week) someone would take it up.  If you were in a particularly hot building, the gap was minimal if none at all.

Now, the tides have shifted, and as I am sure we will see in their more comprehensive JLL quarterly report,  the rent will be off, theoccupancy rates will be off, and the supply coming online will be seen as a threat to any short term stabilization or recovery.

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