On the back of strong demand, this year may be similar to 2005, where office rents rose 30 percent and vacancy rates for all districts were in single digits. This year will also be a breakout year for institutional investors that didn't get any deals last year. On the retail side, no new supply in central Shanghai means rents will continue to rise and vacancy rates at shopping centers will remain in the single digits. Some landlords have reworked tenant mixes to maximize rental income. Meanwhile, the city's residential sector, hit by regulatory measures in the second half of last year, will slowly see an increase in confidence and activity starting in the second or third quarter, said the report.
(Source: Shanghai Daily,2006-01-07) |
