 |
| Industrial Properties in Suburban Shanghai, April and May, 2007 |
| Average leasing and sale prices of industrial properties are climbing steadily in all districts of Suburban Shanghai, according to the above trend lines of leasing and sale price based on statistics by zhaoshang-sh.com. From April to May, one of the peak periods for investment, leasing and sale prices for industrial properties have risen respectively by 2.7% q-o-q and 1.2% q-o-q, because of limited replenishment of supply, growing demands, and the consequent low vacancy rate. Meanwhile, a new state policy effectuated on the first day of 2007 requires that any project must commence construction on the planned area of land within one year of its application; otherwise the area of land shall be confiscated as idle land by relevant authorities. The state also requires land use rights must be granted through public bidding, listing and auction. The new policies are sure to cause a gush of industrial property supply in the latter half of 2007, which will mitigate the soaring of leasing and sales prices in Shanghai which has been most evident in Pudong District. According to zhaoshang-sh.com, in Zhangjiang and Jinqiao industrial zones of Pudong, the plot ratio can reach as high as 2, and land resources in Jinqiao Export Processing Zone are highly scarce. The average leasing price for industrial properties has reached RMB 1.3/m2/day in Jinqiao, and RMB 2/m2/day in Zhangjiang Hi-tech Park. As Figures CF0705-5 to CF0705-8 show, investor demand for properties in Jiading has risen by 25.7% q-o-q, and has been the highest in Shanghai, 3% over Pudong. This high demand can be attributed to moderate rentals and sale prices, as well as a more convenient inland transportation network in Jiading. With convenient rail tracks and bus lines, demand for industrial properties in the city proper has risen by 70% q-o-q, taking up 7% of the total demand, equal to that in Fengxian and 2% higher than that in Jinshan. In terms of area, the majority (74%) demand properties under 2,000 m2 in area; demand for properties over takes up 10,000 m2 a lowest 4%, despite a 50% rise q-o-q. Foreign investment in major projects is still accelerating. Statistics show that in the first quarter, there have been 56 major projects with FDI exceeding USD 10 million, with a total contract value of USD 2.623 billion, 82.6% of the city’s total, up 9.1 percentage points from the same period last year. There are two new hundred-million-dollar cooperation projects in Shanghai: the 400-million-dollar renewed investment into Semiconductor Manufacturing International Corporation (Shanghai), and the 113-million-dollar project of China Worldbest Group. In terms of actually received foreign investment, Sinar Mas Group-APP (China) ranks the first with USD 123 million, Shanghai Yaoda Real Estate Development Co. the second with USD 49.24 million, and Shanghai Zepeng Real Properties the third with USD 40.14 million.  http://www.4008208040.com Third Period Report 2007, Shanghai Assessment & Research Center for Industrial Estate. Figure CF0707-5: Distribution of Demand for Industrial Property among Districts of Shanghai, April & May 2007. Minhang, Jiading, Qingpu, Pudong, Nanhui, Songjiang, Fengxian, Baoshan, Jinshan, city proper Figure CF0703-7: Changes of Demand for Industrial Properties among Districts of Shanghai, April & May 2007. 环比：on last period Figure CF0705-6: Breakdown of Demand for Industrial Properties by Area. Below 2,000 m2, 2,001~5,000 m2, 5,001~1,000 m2, above 10,000 m2 Figure CF0703-8: Changes of Demand for Industrial Properties by Area. |
China Industrial Real Estate Club Address: Room 803-811 Oriental Plaza No.1500 Century Avenue Pudong 200122 Shanghai China Tel: +86 21 68407631 Fax:+86 21 68407632 Email:info@cireclub.com Web: www.cireclub.com Summit Web: www.ciresummit.com |