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Rents of industrial buildings in Shanghai will continue to rise by 2% to 3% in the coming year.

Author: ComeFrom: Date:2018/12/27 15:37:03 Hits:1303

Laifang, a world-renowned private real estate consultancy service company, released Shanghai Industrial Market Report for the third quarter of 2018 on December 20. The report points out that the third quarter is the traditional off-season of the industrial real estate market. The growth rate of macro-indexes slowed down and the turnover was weak. The rent level of logistics real estate and industrial plant remained basically stable and did not rise significantly. In this report, Laifang analyzed and judged Shanghai's logistics warehousing, supply and demand of factory buildings, rental trend and industrial land market.

According to the logistics operation data of China Logistics and Purchasing Federation, the total logistics volume of the whole society in the first three quarters was 204.1 trillion yuan, an increase of 6.7% over the same period last year, and the growth rate fell by 0.2 percentage points compared with the same period in the first half of last year. China's logistics industry boom index averaged 51.6% in the third quarter, down 2.3 percentage points from the average in the first half of this year.

Laifang Shanghai Industrial Services Senior Deputy Director Fang Qiliang said that the third quarter is usually the off-season of logistics transactions. In addition, the government is more stringent in approving logistics projects. Developers and investors can only develop logistics projects by acquiring second-hand industrial land. Moreover, the registration and tax requirements of logistics projects are more stringent, resulting in some potential tenants not to do so. We must not keep a wait-and-see attitude or choose areas outside Shanghai for warehouse leasing. "Therefore, in the third quarter, the rent of Shanghai logistics warehousing real estate remained at RMB 1.55 per square metre per day, which was the same as the previous quarter, and the vacancy rate of logistics warehouse remained unchanged at the level of 8%.

According to the report, the third quarter is generally the off-season of the industrial plant market, so the average rent ring ratio of single-storey industrial plants in Shanghai remained unchanged this quarter, still at 1.22 yuan per square meter per day. From the regional point of view, the highest rental areas of industrial plants are Minhang and Pudong, with daily rents reaching 1.49 yuan and 1.35 yuan per square meter respectively. Qingpu and Fengxian ranked third and fourth, with rents of 1.28 and 1.26 yuan per square metre per day, respectively. The rent of factory buildings in Jinshan District is relatively low, about 1.0 yuan per square metre per day.

The report also shows that in the third quarter, the primary market of industrial land in Shanghai was very active, with 23 industrial land transactions totaling 959,000 square meters. The number of land sold and the area sold decreased by 4.2% and 16.5% respectively. Trading plots are mainly concentrated in Pudong and Songjiang districts. Among them, the trading area of Pudong is far ahead, reaching 385,000 square meters, Songjiang ranks second, and the trading area is 174,000 square meters.

Laifang director and director of Shanghai Research and Consulting Department Yang Yuechen said, "Considering the scarcity of land resources, we expect that the logistics warehouse rent will keep rising steadily in the next year, with a ring-to-ring increase of about 3%-4%. The rent of industrial plants will continue to rise, with a ring-to-ring increase of about 2%-3%. As several logistics warehouses are completed and delivered in the fourth quarter, the vacancy rate of logistics warehouses will rise slightly to 9%.

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