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| Asian Industrial Property Market Flash Q1 2007: Industrial Real Estate Investment HOT in Guangzhou |
June 21, 2007 |
| According to the latest issue of Asian Industrial Property Market Flash for 2007 by CB Richard Ellis, in Chinese cities like Shanghai, Beijing and Guangzhou, foreign investors are still zealous in acquiring large-scale and mature properties. Meanwhile prices for land transfer and rentals for industrial properties have both risen, because of the State Council's imposition of new regulations on industrial land sale methods and minimum industrial land prices. In Shanghai, prices for industrial real estates have increased an average of 3.2% q-o-q. In the first quarter of this year, many foreign investors are still acquiring whole properties in Shanghai. For example, Morgan Stanley has acquired 219 apartment units from Novel City, a luxury residential compound in Xujiahui CBD; New City Corp. from Japan acquired a major logistics facility in Waigaoqiao. As for industrial real estates, the government requires that industrial land-use rights shall be granted strictly through public bidding, listing and auction from this year on. As a result, the average price for industrial land use has risen by 3.2% q-o-q to RMB 879.4 per square meter; the average monthly rental for industrial properties has risen to RMB 38.5 per square meter, up 2.5% from last quarter. Under the new regime, three industrial plots in Shanghai have been transferred through public listing. In Guangzhou, more investors are showing an increasing interest in acquiring office buildings. However, because there aren’t enough Grade-A office buildings for sale, investors have to turn to Grade-B office markets for new opportunities. The biggest transaction in the first quarter is the acquisition of CITIC Plaza by Shenzhen CATIC Group and Yilang Investment Co. for RMB 1.13 billion. Industrial land use prices are also climbing in Guangzhou; however, the zeal to invest in the Pearl River Delta remains as high as ever. In Beijing, logistics has emerged as the hot spot in industrial property investment, with a number of international logistics property developers and investors including AMB, ProLogis and Mapletree actively seeking suitable investment opportunities. Investors have focused on mature industrial areas, including Shunyi Tianzhu in northwestern Beijing and Tongzhou Majuqiao in southeastern Beijing. Meanwhile overseas investors, including Swire Properties and Carlyle, are racing to invest in real estates in Beijing, and domestic insurance companies are also starting to acquire whole properties. http://office.focus.cn/news/2007-06-21/326866.html |
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