Industrial land prices and rents for industrial facilities will rise significantly in Shanghai over the next few years on robust demand from investors and occupiers. This according to CB Richard Ellis, a leading real estate services firm.
Andrew Hatherley, executive director for Industrial and Logistics Services, CBRE China said that over the next four years, prices of the city’s industrial land are set to jump 55% while the rents for an average industrial facility are likely to gain 43% between 2008 and 2011.
Continued control over industrial land supply, coupled with a limited quota for new sites, led to a substantial jump in industrial land prices in the city in the first half of this year.
CBRE, in its latest market research report, said between January and June, the average industrial land price in Shanghai gained 28.2% to RMB1,304 ($190) per square meter,
The rent for an average facility climbed 16.9% to RMB38.8 a square meter a month in the same period.
The CBRE report said in the first six months of this year, industrial land prices in nearby cities jumped 67.4% from a year earlier while facility rents rose 25.2%.
Source: Shanghai Daily