In many parts of China, the warehouses and industrial parks that used to be a magnet for international investors are grappling with a surprising slowdown in business activity.
Logistics hubs built in anticipation of a long-lasting boom in e-commerce, manufacturing and food storage are losing tenants, forcing building owners to slash rents and shorten lease terms.
Shares of real estate investment trusts that own China commercial properties have plummeted, and some of their managers expect rental income to fall further.
Average vacancy rates at logistics properties in east and north China are approaching 20%, the highest in years, according to real estate consultancies. More warehouses are being built, which is making the problem worse.
"We are looking at a supply glut in logistics and industrial properties in China," said Xavier Lee, an equity analyst at Morningstar who covers the real estate sector.
The deterioration is disappointing for property owners that were counting on an economic rebound in China this year.
Denne historien er fra July 01, 2024-utgaven av The Citizen.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 01, 2024-utgaven av The Citizen.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Kriel's Springbok dream is still alive
Bulls utility back David Kriel's dream of playing for the Springboks is still alive and kicking as he targets another strong season for his franchise in the United Rugby Championship (URC) and Champions Cup.
Proteas wrap up ODI series in style
Middle-order batter Tristan Stubbs made an international breakthrough yesterday, compiling his maiden century as the Proteas men's team closed out a superb day for South Africa's national cricket sides.
Broos is at ease with PSL stance
Bafanal Bafana head coach Hugo Broos has praised the Premier Soccer League for allowing him more time to prepare his squad for their two 2025 Africa Cup of Nations Group K qualifiers against Congo-Brazzaville.
Bayern visit bogey side Frankfurt
Bayern Munich travel to bogey side Eintracht Frankfurt tomorrow looking to rebound having dropped points twice in the space of a week.
Valjalo on home turf to defend title
The date has been set for South Africa's premier Skateboarding contest where the country's best skaters will battle it out to see who will be crowned event champions.
Muzi ready for Kranji challenge
Joburg Spring Challenge races have attracted top fields.
Stories from the dot-com era
Some compare the high prices of today’s tech giants to the pricing in the stock market back then.
'We don't want to die'
Over 1000 people killed and hundreds of thousands more flee their homes.
Heart of nation at stake
Can a pledge to protect reproductive rights help Kamala Harris become the first woman to win the White Abortion has never been so close to the heart of an American presidential election, but this is the first to be held after access to the procedure was banned or restricted across much of the country, following a landmark Supreme Court ruling.
Kim ‘ready to nuke all'
North Korean leader Kim Jong-un said his country would use nuclear weapons \"without hesitation\" if attacked by the South and ally the United States, state media reported yesterday.
