THE average rent of shopping centers in Shanghai rose 8.8 percent to US$120.6 per square meter per month for ground floor units in the first quarter of this year from the same period a year ago, according to a Colliers International market research.
The districts of Luwan, Jing'an and Xuhui took the lead. The global property services provider said the strong momentum was fuelled by the nation's sustained economic growth, the successive debuts of overseas retail giants as well as the steady increase in per capita disposable income of local residents.
In particular, Luwan District had the highest average rent of US$147.3 per square meter per month for ground floor units, closely followed by the districts of Jing'an and Xuhui, which asked an average rental of US$135.4 and US$132.2 respectively per square meter per month for ground floor spaces.
In terms of occupancy rates, shopping centers in Jing'an and Xuhui districts were almost fully occupied, and those in Luwan, Huangpu and Pudong ranged between 97 percent and 99 percent in the period, the Colliers report said.
For the whole year, the real estate services company predicted that a total of 460,000 square meters of new shopping center space will enter the local market, almost the same as 2006's level.
Abundant new supply, as a result, will likely push up vacancy rate to 13.5 percent and 17.8 percent in 2007 and 2008. However, the average ground floor rent will continue to rise 13 percent and 10 percent in 2007 and 2008, Colliers said.