Office Market in China: Scale Estimation, Price Determinants and Spatial Convergence

Abstract

In this paper, we apply the Capital Depreciation Model to the estimation of office building scale in 35 major cities. The result shows that the China office market shows an average 40% increase in scale in the past 10 years. Economic growth is the key factors influence the office building price, the influence of scale on office building price is limited. The co-movement of office building prices in China is relatively weak, but the office market is getting more connected in past years.