Increased demand strengthened Shanghai’s office rental rebound
Graham Zink, Jones Lang LaSalle Shanghai

In Shanghai’s office market, increased demand from both domestic and foreign companies has strengthened the rental rebound in Q2. Landlords had strong pricing power, with average rents across the city continuing to increase another 3.9% q-o-q, to RMB 6.6 per sqm per day. Looking ahead, we maintain our forecast of rental growth of approximately 20% for the full year 2010 in Pudong. Average Puxi rents are also expected to rise throughout 2010 on the back of improving leasing demand.