INDEPENDENT MARKET RESEARCH Business Park Trends Government incentives and support remains as a key lever for business park development, cultivating an attractive investment environment for enterprises and capital inflows. High value-added industries including the digital economy, biomedical, artificial intelligence, technology, and green energy are increasingly focused as engines of business park growth, with varying industries of focus across cities in China. 3.2. SUZHOU Existing and Potential Supply As of 2023, Suzhou’s total business park stock stood at near 6.8 million sq m, up 10.8% yoy. The total net new supply in 2023 was estimated to be near 0.7 million sq m. Completions included Suzhou Modern Services Plaza and Digital Intelligence Plaza III of 123,000 sq m and 195,000 sq m respectively. Approximately 1.2 million sq m of business park space is anticipated to be delivered across Suzhou in 2024. Total business park stock is expected to reach near 8.0 million sq m in 2024. SUZHOU MAJOR BUSINESS PARK POTENTIAL SUPPLY IN 2024 Project Supply (sqm) Xingtang Building 137,000 Dushu Lake Digital Economy Business Park 155,000 Suzhou National University of Nanotechnology Science and Technology Park Phase II 366,000 Jingfang Technology Semiconductor Science and Technology Innovation Business Park 120,000 Weili Medical Science and Technology Park Phase II 129,700 Lisheng Business Park 166,000 Shishan Life Technology Medical Device Production Base Project 97,000 Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd Demand and Occupancy Over the past five years, the average gross absorption of business park space in Suzhou stood at about 263,800 sq m per year. As of 2023, the average gross absorption recorded was about 268,500 sq m and the business park occupancy rate declined by 3.3% to 71.1% due to new supply that entered the market. Stronger industrial output growth including automobile manufacturing, electrical and equipment manufacturing and business services provided some support to the overall recovery in Suzhou and an uptick in business park space demand. Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 1.0 0.8 0.6 0.4 0.2 0.0 100 80 60 40 20 0 SUZHOU BUSINESS PARK SUPPLY, DEMAND, AND OCCUPANCY RATE (2018 TO 2023) 2018 2019 2020 2021 2022 2023 Gross Absorption (LHS) Net New Supply (LHS) Occupancy Rate (RHS) sq m (million) % 0.2 70.3% 75.8% 74.4% 75.6% 75.9% 71.1% 0.3 0.2 0.3 0.7 0.2 0.4 0.3 0.03 0.3 0.4 0.3 68 CAPITALAND CHINA TRUST
RkJQdWJsaXNoZXIy NTkwNzg=