Rental Values Suzhou’s average business park rents increased to RMB45.90 psm pm as at 2023, up 0.7% yoy. Suzhou’s average rent recorded a figure higher than the nation-wide average, gradually recovering to its pre-pandemic levels. Average rents observed a stable increase despite an increase in new supply, as new business park developments were able to command higher average rents. Market Outlook The biomedical, information technology, nanotechnology, artificial intelligence industries are expected to continue to be the focused areas of growth in Suzhou’s business parks. While the incoming new supply is expected to add pressure to business park occupancy rates, rents are expected to continue to observe a slight uptick as driven by new, highspecifications developments. 3.3. HANGZHOU Existing and Potential Supply As of 2023, Hangzhou’s total business park stock stood at near 16.1 million sq m, up 10.6% yoy. The total net new supply in 2023 was estimated to be about 1.5 million sq m. Completions included IN 520 and Yunlan Valley Business Park of near 41,200 sq m and 51,900 sq m respectively. Approximately 2.5 million sq m of business park space is anticipated to be delivered across Hangzhou in 2024. Total business park stock is expected to reach 18.5 million sq m in 2024. Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 50.0 40.0 30.0 20.0 10.0 0.0 SUZHOU AVERAGE BUSINESS PARK RENTS (2018 TO 2023) 2018 2019 2020 2021 2022 2023 RMB psm pm 47.33 45.90 45.60 45.90 47.47 46.20 HANGZHOU MAJOR BUSINESS PARK POTENTIAL SUPPLY IN 2024 Project Supply (sq m) Zhejiang University Alumni Enterprise Economic Park Phase II 616,006 Cainiao Cloud Valley Park Project 425,000 Cainiao Intelligent Park Phase II 132,600 Qihoo 360 Business Park 230,000 Sina Business Park I 190,000 Huawei Cloud Innovation Center 180,000 Tiange Business Park 46,300 C-Ray Valley 33,072 Hangzhou Bank Financial Science and Technology Building 21,591 CRC LvTing Road TOD 57,000 HEDA Digital Trade Building 38,893 Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd ANNUAL REPORT 2023 69 Financials Framework Portfolio Performance Leadership Overview
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