File photo shows an exterior view of the Shanghai Stock Exchange at Pudong New Area in Shanghai, east China. (Xinhua)
SHANGHAI, April 12 (Xinhua) - Shanghai's commercial property market showed signs of recovery in the first quarter of this year, with business activities in all sectors resuming normalcy, according to Shanghai 2023 First Quarter Property Review, a Jones Lang Lasalle (JLL) report reaching here on Wednesday.
"Inquiries levels are rising and leasing activities is improving,” said Anny Zhang, managing director for JLL East China and senior managing director of China Leasing Business, adding that with positive implications for Shanghai’s real estate market, the recovery is expected to gain momentum in the rest of the year.
During the first quarter, Shanghai's property inspections and inquiries rebounded, while tenants kept conservative strategies, and leasing activities remained relatively slow. A majority of demand came from established firms, while cost-saving requirements continue to be a key type in leasing demand, said the JLL report.
Jacky Zhu, senior director of Office Leasing Advisory for JLL Shanghai, said that Shanghai's domestic financial service firms remained active in Pudong district, while luxury retailers and professional service firms were resilient in Puxi district.
The decline in Shanghai’s CBD rents slowed, though rents still fell 0.1 percent quarter on quarter amid conservative sentiment. Some tenants took advantage of falling rents to negotiate more favorable terms. The rents for decentralized areas in Shanghai decreased by 0.5 percent during the same quarter last year. However, certain peripheral areas and popular submarkets experienced an increase in leasing demand, said the report
JLL statistics show that Shanghai's total transaction volume reached 24.76 billion yuan in the first quarter this year, an increase 0.65 percent compare to the same period last year. Investment activities continued its pace of recovery following a strong showing in the last quarter of 2022. Investors were displaying an optimistic outlook for Shanghai's investment market.
China has continued to bolster the real estate sector by implementing various supportive policies, such as the introduction of a pilot program allowing private equity investment in real estate and expanding the asset types available for C-REITs. These policy measures not only provide additional financing options for the real estate market but also stimulate investment activity and restore investor confidence in the Chinese market, according to Ling Sun, head of JLL Capital Markets East China. (Contributed by Yang Youzong, edited by Jiang Feifan with Xinhua Silk Road, 346129473@qq.com)
A single purchase
