Average rents in Shanghai’s Pudong New Area are much higher than those in neighboring provinces and Chinese Special Economic Zones (SEZs). As of early 2010, the average rent for industrial manufacturing and warehouse facilities in Pudong was approximately RMB 31 per square meter, per month and rental prices for R&D facilities were approximately RMB 89 per square meter per month. Property in the Pudong New Area is in high demand. Its low vacancy rates (rarely above 10-15 percent) tend to drive up rent prices. Utility costs for industrial purposes have risen due to power shortages across the nation in early 2011. Manufacturing facilities throughout the past five years have been growing so quickly that China’s infrastructure has struggled to provide the necessary resources to keep up. In some cases, China has cut back hours so that electricity needs and water supply can be met. As China struggled to meet electricity needs throughout the nation in early 2011, the cost of electricity from 2010 to 2011, increased by RMB 0.012 per kilowatt hour ($0.004 per kwh). Pudong New Area’s water cost in 2009 was RMB 1.3 per cubic meter and in 2010, it more than doubled to RMB 2.8 per cubic meter. The electricity costs for 2009 and 2010 stayed about the same ranging from RMB 0.62 per kilowatt-hour to RMB 0.68 per kilowatt-hour.
Please click here for a list of Industrial Parks in Pudong New Area that are specially developed for foreign investments and often times offer special incentives and/or programs for foreign companies.
A Note on Industrial Parks: Most new and developing industrial parks in China conduct real estate deals in-house instead of using third-party brokerage services.
|CBRE||Global real estate services firm with offices throughout China|
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