Office rents in Shanghai's Pudong area top those in Puxi, brokers say
The area is overtaking Shanghai's traditional central business district amid increasing demand from financial firms and limited new supply
Increased demand for grade-A office space from domestic and foreign financial firms has led rents in Shanghai's Pudong area to exceed those in Puxi, the city's traditional central business district.
In the first quarter of this year, rents in Pudong reached 9.23 yuan (HK$11.50) per square metre per day, compared to 9.04 yuan in Puxi, says property consultancy Knight Frank.
Separate studies by other property consultancies show a similar story.
According to DTZ, grade-A office rents in Pudong (266.86 yuan per square metre per month) in the first quarter surpassed those in Puxi (265.26 yuan) for the first time since the third quarter of last year.
Jones Lang LaSalle says rents of grade-A office buildings in Pudong rose by 1.3 per cent quarter-on-quarter to 9 yuan per square metre per day in the first quarter, while rents in Puxi dipped by 0.3 per cent from the previous quarter to 8.9 yuan.
However, when it comes to the rents for Shanghai's top 18 office buildings, those in Pudong averaged 10.5 yuan per square metre per day, compared to 10.7 yuan for those in Puxi, says Jones Lang LaSalle. But the firm forecasts rents in Pudong will overtake Puxi in this quarter or the next quarter.
