September 14, 2022: -Commercial parcel is a bright place in Chinese real estate, contrasting with the doom and despair of the residential housing market.

Property analysts and designers added offices, warehouses, and business parks are proving resilient and continuing to turn over steady rental revenue, albeit overlooked because of softer demand.

Hong Kong-listed property firm KWG Group Holdings just said earnings from rents from offices and different commercial properties rose 6% in the foremost half of the year, actually though income from housing development and deals in China is decreasing nearly 37% from a year ago.

Likewise, property group CIFI Holdings posted a 23% year-on-year drop in home sales in China for the top half but declared a 69.5% lift in its property investment income.

In July, Hong Kong’s Hang Lung Effects added a slight lift in its first half profits, which Vice Chairman Adriel Chan named a “pleasant surprise.” While the company reported subordinate profits from malls and hotels due to pandemic lockdowns, premium office rents surged by 16%.

“Office has done surprisingly alright for us. It currently accounts for about 20% of our mainland China income. And it’s been very resilient. I know that not all developers possess the exact experience. And so yes, we would continue to look at offices,” Chan told CNBC in July.

Hang Lung, which primarily supports retail property in mainland China, saw occupancy speeds at its headquarters buildings in Wuxi, Kunming, and Wuhan continue to rise. Similarly, Shenyang and Shanghai companies held up amid the current rentals’ dim options.