Commercial rents bounce back

09:01, October 15, 2010      

Email | Print | Subscribe | Comments | Forum 

Commercial property rents increased slightly in first-tier cities in the third quarter as demand continued to fuel a rebound in the sector, data compiled by real estate consultancies showed Thursday.

Office space demand grew and leasing activity was high in the third quarter in Beijing, with China World Trade Center Tower III now open. The building is the tallest in Beijing at over 80 stories. The overall rental growth increased 8.5 percent quarter to quarter from 249.77 yuan ($37.54)to 271 yuan ($40.73) per square meter per month based on net floor area, Jones Lang LaSalle said in a press release Thursday.

"We expect rental growth to slow as more expensive buildings enter the market in the fourth quarter in Beijing," said Zhang Ying, managing director of Jones Lang LaSalle. "Approximately 400,000 square meters of new office space is expected to come online, with 60 percent of the new space located in the CBD, so the new supply will help temper rent growth."

In Shanghai, office rents rose across all business districts in the third quarter with the average rent rising 2.9 percent, , real estate firm Savills (Shanghai) said in a report Wednesday.

Meanwhile, demand for retail space in Beijing remained strong in the third quarter, and rental prices went up by 4.2 percent quarter-on-quarter from 573 to 597 yuan ($85-89) per square meter per month.

In Shanghai first-floor prime shopping mall rents increased 0.3 percent in the third quarter to an average of 34.6 yuan ($5.20) per square meter per day, according to Savills (Shanghai).

"The thriving economy and strengthening consumer confidence have fueled the rebound," Qin Xiaomei, head of research with Jones Lang LaSalle, said Thursday.

Industry watchers said more investors will enter second- and third-tier commercial market.

"Some investors already plan to invest in second- and third-tier cities, where ... there's a lot of room for growth," said Pang Shudong, head of Jones Lang LaSalle's Beijing Investment Team said Thursday.

"But a lack of transparent rules will prove to be major obstacles to investing in smaller cities," Pang said.

Source: Global Times

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion