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Pudong office rents top those across river
By Cherry Cao |
April 9, 2013, Tuesday
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Online Edition
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GRADE A office rentals in Pudong New Area surpassed those in Puxi for the first time in more than 2 years, according to a report.
Pudong topped rents charged across the Huangpu River at a time when overall rents in Shanghai remained flat, said the quarterly report by real estate services provider Jones Lang LaSalle.
Top rents in Pudong rose 1.3 percent quarter on quarter to 9 yuan (US$1.43) per square meter per day in the first three months of this year.
This beat Puxi for the first time since the third quarter of 2010, where rents dipped 0.3 percent from the previous quarter to 8.9 yuan per square meter per day, said Jones Lang LaSalle.
Across the city overall, rents climbed 0.4 percent to 8.9 yuan per square meter per day during the three-month period.
"Pudong rents continued to grow at a steady pace, while in Puxi, they fell insignificantly as the majority of landlords held rents flat despite weak demand and new supply," said Anny Zhang, national director of markets at Jones Lang LaSalle.
"We expect Puxi rents to turn positive in the second quarter of this year as demand from multinational companies is recovering."
In Puxi, retailers and pharmaceutical tenants remain the two sectors that have maintained the strongest level of demand.
New completions coming into the market between January and March - including No. 8 Huangpu, Garden Square and Jing An Kerry Center Tower 2 - pushed up the vacancy rate by 3 percentage points to 11.4 percent in the first quarter.
This is the highest in more than two years, according to Jones Lang LaSalle data.
That compared to Pudong, where vacancies inched up 0.1 percentage points to 7.6 percent for the same period amid continuing robust demand from financial services tenants.
In the office buying market, meanwhile, demand for strata-titled space remained strong in Shanghai in the first quarter.
This was fuelled by domestic companies for self-use purposes, as well as individual investment demand.
Pudong topped rents charged across the Huangpu River at a time when overall rents in Shanghai remained flat, said the quarterly report by real estate services provider Jones Lang LaSalle.
Top rents in Pudong rose 1.3 percent quarter on quarter to 9 yuan (US$1.43) per square meter per day in the first three months of this year.
This beat Puxi for the first time since the third quarter of 2010, where rents dipped 0.3 percent from the previous quarter to 8.9 yuan per square meter per day, said Jones Lang LaSalle.
Across the city overall, rents climbed 0.4 percent to 8.9 yuan per square meter per day during the three-month period.
"Pudong rents continued to grow at a steady pace, while in Puxi, they fell insignificantly as the majority of landlords held rents flat despite weak demand and new supply," said Anny Zhang, national director of markets at Jones Lang LaSalle.
"We expect Puxi rents to turn positive in the second quarter of this year as demand from multinational companies is recovering."
In Puxi, retailers and pharmaceutical tenants remain the two sectors that have maintained the strongest level of demand.
New completions coming into the market between January and March - including No. 8 Huangpu, Garden Square and Jing An Kerry Center Tower 2 - pushed up the vacancy rate by 3 percentage points to 11.4 percent in the first quarter.
This is the highest in more than two years, according to Jones Lang LaSalle data.
That compared to Pudong, where vacancies inched up 0.1 percentage points to 7.6 percent for the same period amid continuing robust demand from financial services tenants.
In the office buying market, meanwhile, demand for strata-titled space remained strong in Shanghai in the first quarter.
This was fuelled by domestic companies for self-use purposes, as well as individual investment demand.
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