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| CB Richard Ellis: Industrial Real Estate in Shanghai, Beijing and Guangzhou in the Ascendant |
June 21, 2007 |
| According to CB Richard Ellis （CBRE）2007 report on Asia real estate market, foreign and domestic investors are still keen to make overall acquisition of large well-developed properties in Shanghai, Beijing and Guanghzou. The new policy on the land used for industrial purpose has contributed to the rising price of the land and the rents for industrial properties. Shanghai has seen 3.2 percent year-on-year growth rate of industrial real estate. 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 units of Novel City in Xujiahui. The Japanese New City Corporation bought the warehouse located in Waigaoqiao. Since early this year, the auction policy on land used for industrial purpose has been implemented nationwide. The average price of the land used for industrial purpose 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. Three plots of land for industrial purpose in Shanghai have been transferred by public bidding, auction and listing. 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 both residential and commercial Citic Plaza for RMB1.13 billion. The price of the land used for industrial purpose in Guangzhou is also on the rise, but the rising price has not dampened the enthusiasm of foreign capital to invest in the Pearl River Delta 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. 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. 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. http://info.winfang.com/news17859.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 |