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Shanghai’s residential leasing market grows in Q2

SHANGHAI'S residential leasing market witnessed moderate rental growth in the second quarter of this year, fuelled mainly by demand from domestic clients, according to global real estate consultancy Savills.

Average rental climbed 1.8 percent quarter on quarter to 195.2 yuan (US$28.6) per square meter per month during the April-June period, with increases registered across all three submarkets, Savills China said in a latest report.

Notably, rental for strata-title apartments rose 3.3 percent, outperforming the 1.5 percent quarterly growth for serviced apartments and the 1 percent gain for villas.

"In fact, leasing demand from domestic entrepreneurs has been rising rapidly while increasing talent localization, shrinking accommodation budgets at multinational companies as well as health concerns caused by haze weather have jointly led to a decline in demand from expatriates," said Liza Wu, director of Savills Shanghai residential leasing.

Overall occupancy rate, meanwhile, stayed firm at over 80 percent in the second quarter of this year, when two new serviced apartment projects -- Stanford Residence Xuhui and St. Regis Residential Apartments -- were launched, adding 174 units in total to the local residential leasing market, Savills data showed.


Looking forward, the city's residential leasing market is expected to remain stable with Pudong New Area seeing particularly strong demand, primarily boosted by continuously growing number of financial companies in the area as well as those in the China (Shanghai) Pilot Free Trade Zone, Wu predicted.


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