Self-use property buyers attracted to Beijing's business parks

Self-use buyers are increasingly active in the capital's commercial property investment market this year and have a strong interest in business parks, according to industry reports.

In the first three quarters of this year, self-use buyers completed 12 transactions in Beijing, accounting for 32.5 percent in terms of transaction value, up from 30.3 percent from the same period last year, statistics from real estate service provider Savills show. Also, among the different types of properties, they particularly favor business parks.

In fact, Beijing's business parks continue to attract both domestic and foreign investors in the third quarter, as key drivers of demand in business park properties are thriving.

Longfor Properties sold the Zhigu Building located in Zhongguancun Environmental Science and Technology Park to Inspur Group for self-use purposes at 906 million yuan ($126 million). In addition, CBC completed the acquisition of the life science facility located at China Biomedicine Park in Daxing, according to JLL, an international real estate service provider.

The rapid development of the technology and life science industries has brought an increase in demand, and investors and enterprises looking for self-use facilities are still seeking opportunities for high-quality business park properties.

"The attention to business parks, rental housing and logistics remains. Under the continuous effect of favorable factors, such as the development of REITs, Beijing's commercial real estate market will continue to attract domestic and foreign investors and self-use property buyers," said Jessie Xu, Operations Director, China and Head of Capital Markets, North China, JLL.

Zhang Ying contributed to this story.