Rent Prices for Warehouses Increased Due to High Demand for Storage Space
Due to a recovering exports and export oriented firms the demand for storage space in the free trade zone in Shenzhen has been on the rise for the second quarter of this year, leading to a surge in rent prices for warehouses. Average rent prices for a ware house on the free trade zone increased by 2 percent to 34.8 yuan per square meter for the second quarter just after when the city exports see its first increase in May in five months.
Exports rose by 2.2 percent compared to a year ago, which bring the total exports in April and May to US$ 42.5 billion. Property owners in Bao’an, Yantian and Qianhai areas are expecting to see exports increase for the remainder of the year, have hiked the rent back up to levels that has seen a year ago. Vacancy rate of warehouses haven’t change compared to the earlier quarter with stood at 19.6 percent and vacancy rate of warehouses in the non free trade zone is high standing at 25.3 percent. Ware houses in Longgang have increased by 30 yuan per square meter a month for the second quarter which resulted to a 1.8 percent price increase in the average rant for ware house located in non free trade zones.
Preferential policies are now being offered by Qianhai economic zone and the resuming of initial public offerings help stirred the financial sector demand for class A offices in the central business district for the second quarter which resulted in a 1 percent point drop in the vacancy rate. Another sign of the resurgence is that the average monthly rent for offices increased by 3.2 percent or at 199 yuan per square meter per month due to a strong demand for class A offices in Futian district.