China struggles to fill up skyscrapers as more companies switch to 'work from home' model

When the Coronavirus pandemic hit the world, it forced people to either isolate or practice social distancing to prevent themselves from contracting the deadly virus. With numerous restrictions in place, the corporate sectors allowed their employees to work remotely. This abrupt transition turned heavily on the corporate buildings. Recently, an extreme impact on the real estate business has been reported from China, where its skyscrapers earlier filled with thousands of employees are now struggling to cover the office space. 

According to the National Bureau of Statistics reports, the vacancy rate for office space in the country's tech hub Shenzhen reached 26.4 per cent in the April-June quarter, up by 7.5 per cent from the same period in 2019. The report added that the investment in real estate development jumped to $92.6 billion in 2015 from about $27.7 billion in 2010, while the numbers remained at elevated levels through 2020. In Shenzhen's Futian financial district, a 65-story building "was 70 per cent vacant at its worst point," a property market source informed.

"While lease activity has picked up somewhat, monthly rent per square meter remains depressed at ¥ 200 ($30), or about 60 per cent of pre-pandemic levels, a person related to real state business informed. According to a report of NIKKEI Asia, a financial newspaper, SOHO China, an office and commercial property developer, has decided to sell off the majority of its stake to Blackstone, which is the world's biggest alternative asset manager. The development came after SOHO China was struggling to keep up with bigger players in terms of the scale and speed of its projects. The company suffered a third straight year of falling net profit in 2020, noted the report of the financial newspaper. 

Facebook extends work from home 

Recently, social media giant Facebook has extended work from home for its employees till next year. According to Facebook's latest announcement, employees would join the United States-based offices from January 2022. The company, in its announcement, promised to render adequate time for employees to join work at its offices. "The employees would be asked to join the offices as per the condition of coronavirus. Our approach is based on 'data', not the 'date'," a Facebook spokesperson said. "We are monitoring the situation wherever our offices are situated. We have engaged various health experts to ensure the safety of our employees," the spokesperson added. 

(With inputs from ANI)

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