Expanding options

But 2007 and 2008 are bringing new options and new opportunities for these occupiers with the completion of 10 new Grade A office buildings and entry of 11 new wholly owned shopping centers. Tenants now have high-quality options to choose from and international retailers are expanding rapidly, with some brands, such as Zara, expanding into several new locations in less than a year.

Retailers are also actively signing pre-leasing deals in upcoming new developments to ensure that they have a strong presence in Beijing's promising market.

The 2008 Games represents an opportunity for multinationals and luxury retailers to access China's population on an unparalleled scale. The need to have an established platform from which to launch these marketing campaigns has accelerated the China-entry process for some global companies. Additionally, luxury retailers and consumer product companies are eager to use this event to introduce China's huge consumer base to their products and culture.

The expansion of Beijing's transportation infrastructure is a change that will substantially impact the city's future development. This impact is broad and will also be a very powerful driver for property growth in Beijing.

Pedestrian traffic and connectivity for areas surrounding new metro stations will increase dramatically, enhancing access to new retail developments and driving up property and rental values.

Public transport

Expanding the public transportation infrastructure into more suburban areas facilitates the development of peripheral residential hubs. These are important locations for affordable housing and are a key part of Beijing's efforts to decrease population density in the urban core.

New subway lines running through established commercial areas will increase property values for adjacent developments and also enable more convenient commuting for workers.

The Games has a clear "green" emphasis and this is increasing awareness of the need for a healthy environment. Green or sustainable office buildings are emerging in Beijing, and residential communities are also beginning to integrate sustainability features.

"Importantly, for individual residential buyers, the strongest selling point for sustainable buildings is likely to be the positive impact of a healthier internal environment as opposed to energy savings. Should utility costs increase in the future, however, energy savings will become a much more important differentiator," Christensen said.

(China Daily May 23, 2008)