Center

Property curbs to have impact

By Zhang Yu (China Daily)
Updated: 2006-10-24 09:10

Meanwhile, Citigroup Property Investor entered into a joint-venture redevelopment of historical homes in the lanes of Jianyeli in downtown Shanghai, while a separate division of Citigroup paid 65 million yuan (US$8.2 million) to acquire a 38,000 square-metre office portion of the Daning Life Hub project

Unlike last year, foreign institutional investors are purchasing properties other than offices and high-end residential buildings. "That's mainly because the price of offices and residential buildings is extremely high in Shanghai, so investment in these two types of properties can bring fewer returns than before," said Terence Tang, an investment expert at Jones Lang LaSalle.

Office rents have risen dramatically in Shanghai, with office space now at a premium in the city.

Although it has yet to be completed, all available office space at Plaza 66, a high-end development on West Nanjing Road, has been snapped up.

Daily rents are expected to reach US$1.4 to US$1.6 per square metre.

Demand for luxury residential apartments remains strong, as seen by the robust sales of a number of new projects in the third quarter. Jing'an Four Seasons sold out all 192 available units within one month, at an average price of over 30,000 yuan (US$3,797) per square metre. Meanwhile, Lakeville Regency sold another 70 units in the third quarter, at an average price of 53,000 yuan (US$6,709) per square metre.