? ?
BIZCHINA / Major Cities
Shanghai property market?keeps?pace
By Zheng Lifei (China Daily)
Updated: 2007-08-20 06:50
SHANGHAI: The property market in the city is expected to remain buoyant
in the second half of the year, driven by growing numbers of retailers,
corporate office rentals and demand from the manufacturing and logistics
industries, analysts say.
The commercial real estate sector, fueled by an economy that grew by 13
percent in the first half, continued its momentum from last year and is
likely to sustain the pace in the second half.
Retail market
Strong retail sales and the arrival of more foreign retailers in the city
will continue to propel the retail property market in Shanghai, analysts
note.
Total property revenues in the city reached 188.7 billion yuan (US$24.83
billion)?in the first half of this year, up 14.2 percent year-on-year,
the fastest pace in a decade, according to figures released by the
municipal statistics bureau.
Foreign capital has been expanding in the retail industry as the market
further opens and domestic consumption continues to accelerate.
Contractual foreign direct investment (FDI) in both wholesale and retail
industries in Shanghai totaled $1.711 billion in 2006, accounting for
11.7 percent of the total FDI in the he city, up 3 percent year-on-year.
International retailers of all types, from fashion, food and beverage
operations to big-box hypermarkets, continued to flock to Shanghai, the
most cosmopolitan city in China, driving up average ground floor rentals
to $120.60 per sq m a month in the first half of the year, a 8.8 percent
year-on-year increase, according to Colliers International, a global real
estate consultancy.
Total foreign-funded retail property purchases reached almost 8.8 billion
yuan in the first quarter of the year, growing 15.4 percent year-on-year
and accounting for 9.4 percent of all retail property purchases,
according to official figures.
"The future development of high-end retail properties (in Shanghai) will
be driven by the robust growth of foreign retail businesses," Colliers
International says in a research note.
It is a view shared by other property analysts.
"Inquiries from European retailers alone have risen by more than 50
percent over the previous quarter and more are expected to enter Shanghai
later this year," says Kenny Ho, research head for global real estate
services firm Jones Lang LaSalle, Shanghai.
"Their entry will definitely fuel the demand for retail space," Ho says.
(For more biz stories, please visit Industry Updates)
?? ?? 1?? 2?? ??
?? ?? 1?? 2?? ??
Learn Chinese, Chinese language
No comments:
Post a Comment