Great Potential of Shanghai Industrial Estate

The newly report on Shanghai industry published by Colliers International shows that the rental fee in the main industrial zones in Shanghai has increased to 0.82RMB/sq.m/day, with growth of 5.12% compared to the data of 2006. the sale price of land in industrial zones has also increased. In May, 2007, the average price of industrial facilities in industrial zones was $453, increased by 2.55% compared to 2006. Conditions in shanghai commercial zones are also striking, the average rental fee in the seven main commercial zones is $0.41/sq.m/day, increased by 5% compared to 2006.
Colliers International indicates that in the first quarter of 2007, the high level of foreign investment has played a forcing role in increasing the need of industrial land and facilities in Shanghai. Besides, the quick development of import and export as well as the growth of goods transport have also contributed to the increasing need of industrial land and logistic facilities.
According to the rental investigation conducted by Colliers International, the rental fee on one-floor factory building and warehouses in Zhangjiang Industrial zone is the highest in Shanghai, reaching 1.2 RMB/sq.m/day. And the bonded warehouses in Waogaoqiao Bonded zone ranks the second, 1.08RMB/sq.m/day. With regards to the sale price of industrial property, industrial facilities in Zhangjiang and Jinqiao Industrial zone is the most expensive, $725 and $688 per sq.m of each. Meanwhile, the rental rate of return has also increased, in May, 2007, the rental rate of return increased by 0.23% to 8.26% compared with the data in 2006. The price in Zhangjiang Industrial Zone is till now the highest, $206/sq.m. with Waigaoqiao $197/sq.m the second.
According to the planning of government, Shanghai will put great emphasis on the development of modern logistics. In the next five years, Shanghai will boost the development of four main logistics zones, including Yangshan Bonded harbor logistics zone, Waigaoqiao logistics zone, Pudong Konggang logistics zone and Xibei logistics zone.
Colliers International indicates that there will be a great and sustained need of industrial land and facilities in Shanghai, especially the places near main logistics zones, as Shanghai is developing into the logistics center in Asia Pacific region. According to the forecast of Colliers International, the average rental fee in main industrial zones will be stable with the increase of 2-3%.