Beijing's office market saw two deals in Q3

Beijing's office investment market became more active in the third quarter, with two deals concluded during the period, real estate consultancy firm Colliers International said in a report on Wednesday.

A Grade A office building with a permitted gross floor area of about 57,000 square meters in the Wangjing area, currently under construction, was sold to a domestic B2B company for an owner-occupancy deal.

Separately, four blocks of Grade A office buildings in the same precinct, with a combined total permitted gross floor area of around 26,000 square meters, were bought by a conglomerate of private equity investors.

The investment market in Beijing's office property sector is expected to remain active, the report said.

Despite forecasts saying that yields will not be as attractive across many sub-markets in the next few months, there should be one more deal in the CBD and Lufthansa sub-markets, which will be concluded and announced in the next few months, according to the report.

Beijing is expected to continue to attract overseas and domestic companies trying to establish, expand or relocate their headquarters or offices.

Colliers International estimates that demand for office property in Beijing over the next 6-12 months will be driven by sectors such as the legal profession, educational companies, pharmaceuticals, media, technology, consumer goods, natural resources and energy, and professional services.