Related News
Home » Business » Finance Special
Property developers see bonanza looming
Print Edition
The China (Shanghai) Pilot Free Trade Zone, which officially started operation yesterday, will have a positive impact on the city’s real estate market, industry analysts said.
“Demand for high-quality office buildings will increase notably in the zone because the current inventory there remains largely inadequate,” said Sam Xie, director of research at CBRE Shanghai. “Banks, trading companies and shipping firms are expected to be the first group to avail themselves of high-quality office space in the zone.”
The commercial property impact isn’t expected to be confined to the zone.
“The long-term impact will extend far beyond 29 square kilometers,” said Joe Zhou, head of research at Jones Lang LaSalle Shanghai. “It will serve as a catalyst to help Shanghai build into an international financial center toward 2020, which has profound implications for Shanghai’s office market.”
The industrial property sector is also braced for a robust shot in the arm.
“Following the announcement of the free trade zone, there has been a wave of interest in bonded logistics space as third-party logistics firms foresee increased demand from a range of customers,” Zhou noted. “In a longer run, the zone could raise Shanghai’s attractiveness as an international trading center by reducing regulations and making procedures more smooth and efficient.”
Luo Jin, head of industrial and logistics services for CBRE’s East China operation, shared a similar view.
“The logistics business will certainly climb in the zone as reduced tariffs coupled with eased trade barriers will help boost cargo flows,” Luo said. “As a result, more industrial property developers are looking for investment opportunities in the zone in order to get prepared for an expected surge in the segment.”
Compared with the office and industrial property sectors, the city’s residential market has already begun feeling the impact of the new zone. Housing price and sales volumes have surged in the area in the past month.
“The establishment of the free trade zone is expected to attract more talent to work and live in those areas, which will naturally boost housing demand in the greater Pudong area,” said Jenny Wu, director of residential sales for East China operations at DTZ.
“In particular,” she said, “comparatively mature, high-end residential communities in Pudong such as Waigaoqiao Senlan and Tangzhen will get immediate opportunities for further development while the city’s overall high-end housing market will benefit from the program in the longer run.”
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
