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BIZCHINA / Construction |
Pudong industrial land leads in average rentsBy ()
Updated: 2007-06-20 15:47 Robust demand and a limited supply of industrial land and facilities have further fueled average rentals and capital values of industrial properties in Shanghai, with those in Zhangjiang, Jinqiao and Waigaoqiao areas in Pudong New Area taking the lead, according to two reports. By the end of May, the average rental for major industrial parks in the city has reached 0.82 yuan per square meter per day, a rise of 5.12 percent from the end of 2006, Colliers International, one of the world's five largest property advisers, said yesterday in a market survey. In particular, multi-floor factories or warehouses in Zhangjiang had the highest rentals of 1.2 yuan per square meter per day, followed by bonded warehouses in Waigaoqiao which are leased at 1.08 yuan per square meter per day. However, industrial properties in the city's western Qingpu and southwestern Songjiang districts are the cheapest with daily rents there just 0.59 yuan per square meter, Colliers' research has found. Meanwhile, the average capital value of major industrial parks in the city continued to appreciate, reaching US$453 per square meter at the end of May, up 2.55 percent from the end of 2006. Among all industrial parks, those in Zhangjiang and Jinqiao areas are the most expensive at US$725 and US$688 per square meter respectively by end of last month. In terms of the average land price, Zhangjiang and Waigaoqiao areas continued to lead the local market. According to Colliers' study, the average land price of major industrial parks in Shanghai jumped 10.43 percent to US$112 per square meter by the end of May with land parcels in Zhangjiang and Waigaoqiao being sold at an average of US$206 and US$197 per square meter respectively. Despite the increasing costs in industrial properties, demand by multinational corporations remained robust. For instance, Coca Cola has recently signed a contract with Zizhu Science Park in southwestern Minhang District to set up its China headquarters, Asia Pacific R&D center and global sample laboratory center; Astra Zeneca is planning to set up its China R&D center in Zhangjiang High-Tech Park; and Maersk Line has just leased a 100,000-square-meter site in Lingang Development Zone to set up its distribution center. Statistics from CB Richard Ellis, another Big Five real estate agency, also indicated a similar trend. According to CBRE quarterly review, the average rent for industrial facilities in Shanghai rose 2.5 percent to 38.5 yuan per square meter per month in the first quarter, while the average industrial land price jumped 3.2 percent to 879.4 yuan per square meter in the same period. (For more biz stories, please visit Industry Updates)
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