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| The Average Price of Shanghai Industrial Real Estate Sees 3.2 Percent Quarter-on-quarter Growth Rate |
June 6, 2007 |
| Yesterday, CB Richard Ellis （CBRE）released its Asia real estate report in the first quarter of 2007. In such cities as Shanghai, Beijing and Guangzhou, both foreign and domestic investors are keen on overall acquisition of large mature properties. Owing to the new policy on the land used for industrial purpose, the price of the land and rents for industrial properties have both increased. In Shanghai, the average price of industrial real estate has seen 3.2 percent quareter-on-quarter growth rate. In the first quarter of this year, there are many cases of foreign capital making overall acquisition of properties in Shanghai. Morgan Stanley acquired 219 apartment units of Novel City in Xujiahui. The Japanese New City Corporation bought the warehouse located in Waigaoqiao. At the same time, foreign investors like Hongkong Swire Properties and Carlyle Group have declared to invest in Beijing real estate. Some domestic insurers have joined the ranks of overall acquisition of properties as well. In Guangzhou, more and more investors are showing interest in buying office buildings. As there are few Grade A office buildings available for wholesale, investors have to turn to grade B office buildings for opportunities. In the first quarter of this year, the largest property transaction was made by Shenzhen Catic Group and Guangdong Yilang Investment Company, which acquired the residential and commercial Citic Plaza for RMB1.13 billion. Since early this year, the policy of public bidding, auction and listing on industrial land has been implemented nationwide. The average price of the land used for industry in Shanghai has witnessed a quarter-on-quarter growth rate of 3.2 percent, reaching RMB 879.4 per square meter. Driven by the growing land price, the rent for the industrial property also has seen a quarterly increase of 2.5 percent, reaching RMB 38.5 per square meter per month. And there is a similar story in Guangzhou. However, the rising price has not dampened the enthusiasm of foreign capital to invest in the Pearl River Delta. In addition, logistics real estate has become the favorite of industrial real estate investment in Beijing. Many developers and investors of logistics or real estate, such as AMB, Prologis and Mapletree, are seeking opportunities in this field. These investors focus their attention on well-developed industrial areas like Tianzhu district of Shunyi, northwest of Beijing, and Majuqiao district of Tongzhou, southeast of Beijing. http://info.winfang.com/news16893.html |
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 |