China's plan to integrate Beijing, Tianjin and Hebei province into the so-called capital economic circle may cause a serious oversupply risk in the real estate sector if a well-coordinated development strategy is not in place, real estate services firm Jones Lang LaSalle warned on Monday.
Given China's slowing economic growth and weaker expansion of commercial property occupancy, demand across the region is insufficient to justify a large creation of commercial real estate, especially office space, the company said in its latest report.
More than 15 million square meters of commercial space is expected to be completed in Beijing and Tianjin under the plan by 2020. While it is unlikely that all of the space will be completed on time, the fact that so much space is planned for the two cities is worrying, the report said.Â
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China's plan to integrate Beijing, Tianjin and Hebei province into the so-called capital economic circle may cause a serious oversupply risk in the real estate sector if a well-coordinated development strategy is not in place, real estate services firm Jones Lang LaSalle warned on Monday.
