[photopress:pudongvillas.jpg,full,alignright]The residential market generally may be somewhat down in Shanghai but villas have bucked the trend and posted a record high occupancy rate and rents in the third quarter.
Industry observers put up reasons which are possible even if they do not sound totally probably. For example, this rise is attributed this to the start of the school year as expatriate families returned to the city. Also suggested is that the impact of the latest government measures banning them from buying properties led them to rent villas. Neither are overly-convincing arguments. But both are possible.
DTZ (Shanghai) Consulting & Research, a real estate service firm says that the occupancy rate in the villa sector rose 4.9 percent in the third quarter from the previous three-month period to 92 percent. This is the highest recorded level since 2000.
Most of the city’s villas are in Changning and Minhang districts and Pudong New Area. Supporting the school theory these districts have international schools located nearby. Demand for villas in these areas come from Hong Kong, Taiwan, Europe and the United States.
Villas in Pudong New Area in particular are seeing higher occupancy rates with the year’s average level to date at around 97.9 percent which is probably as high as you can go for with rented accommodation 100 percent is effectively impossible.
According to Savills strong leasing demand has pushed rental rates for villas to rise in Puxi by 1.3 percent to US$23.60 per square meter per month while Pudong New Area edged up 0.7 percent to US$19.60 per square meter per month in the third quarter.
Source: Shanghai Daily