Shanghai to see large-scale commercial property deal boost | 21 February 2013
The office and retail property sectors in Shanghai, China will see ‘significant increases in large-scale deals’ this year.
That’s according to a research report from international property firm Knight Frank, cited by chinadaily.com.cn, which believes the growth in these sectors will be supported by investors’ strong interest in commercial real estate.
The region is a huge target for multinational firms looking for expansion and other business opportunities, hence the boost to commercial and residential property sectors.
The boost also highlights how well China is coping despite the backdrop of an uncertain economy overseas, showcasing a confidence in the market from international investors.
According to Knight Frank, ground-floor rents in ‘core retail areas’ have hit 54.7 yuan per sq m per day, marking an increase on 1.7 per cent on the previous quarter. In addition, this also highlights a rise of 11.6 per cent year-on-year.
However, Grade-A office rents dropped 1.5 per cent quarter-on-quarter to 9.1 yuan per sq m per day, signalling a drop for the first time since the third quarter of 2009. Nonetheless, investors remain unfazed and will continue to snap up commercial property in the region of Shanghai, especially as the average vacancy rate of the offices remained steady at 5.1 per cent.
The report comes off the back of a meeting by the China State Council, reported by shanghaidaily.com, which suggests policymakers will increase land supplies for regular commercial housing projects this year.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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