shanghai real estate & lifestyle_december
TRANSCRIPT
December
NEWSLETTER
Table of ContentsMarket Insight – Da Hongqiao RisingThe SceneProperty Snapshots – Sky Soho, CD Center, BenQ, RafflesChangning,3CorporateAve, ChamtimePlazaEvents Calendar – NewYear’sConcerts,BiennaleRestaurant Suggestion — HuskGetting Around (1) — PrivateJetChaterGetting Around (2) — ElectricScootersGiving Back — SofiaGroupSponsorsGiftBags forChildreninRuralChinaMarket Data & Notes
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The Rise of Greater HongqiaoAsournewsletterreader,you likelyknowthatHongqiao isanarea inwesternShanghai,andprobablyassociate thenamewith theGubeiresidentialareaandLoushanguanRoadwheremanybusinessesandconsulateshaveoffices.Ifyou’vebeenpayingattentiontothelocalnews,youmayalsohaveheardofGreaterHongqiao(inChinese,DaHongqiao),theareaatthecenteroftheShanghaigovernment'splantotransformwesternShanghaiintoaboomingeconomicgrowthengineanalogoustoPudongintheeast.TheGreaterHongqiaodevelopmentplanobviouslymeansbig things for thecity’scommercialpropertymarket,andsomeritssomeexamination.
What and where is it?
Asageographicarea,GreaterHongqiao,asweunderstandit,iscurrentlybeinginterpretedintwoways.
First,asdetailedonChina'sWikipediaBaiduBaike,GreaterHongqiaoreferstoadistinct86-square-kilometre(sqkm)areainthewestofthecitythatbeginsalittleeastofHongqiaoAirportandextendswestwardabout10kilometers,stretchingnorth-southabout10kilometersaswell.TheareaincludestheHongqiaoTransportationHub,withitsbullettrainsandbusesconnectingShanghaitotherestoftheYangtzeRiverDelta.Intermsofdistricts,theareaencompassespartsofChangning,Minhang,QingpuandJiading.
Second,“GreaterHongqiao” issometimesusedmore looselytorefertoall thewesternpartsof the city thatwill beeconomically andfunctionallyintegratedwiththeabovearea.Hence,manylocalChinesemediareportshavedescribedGreaterHongqiaoasencompassingthewholeofChangningdistrict,whichincludesZhongshanParkandotherareaswithintheinnerringroad.
Having two interpretationsofGreaterHongqiao'sborders isnotasillogicalasitmightseem,becauseunlikethedistrictsthatitiscomprisedof,GreaterHongqiaoitself isnotanadministrativedivisionofthecity.Itisratheranareadelimitedbasedonitsintendedeconomicandurbanfunctions.And since these functionsoverlapandcomplement thefunctionsofadjacentareas, justexactlywheretheborders lieonthefunctionallevelmaynotbesodistinct,orforthatmatterimportant.
Thedevelopmentplanfortheofficial86-sqkmareahastwomainparts:
•theHongqiaoCommercialZone( 虹桥商务区 ),a26-sqkmareawithsurroundinggreenbeltthatencompassestheHongqiaoTransportationHub (HongqiaoAirport,HongqiaoRailway Station andHongqiaoLong-DistanceBusCenter)andthatthecity intendstomakeacenterformodern service industries, international tradeand corporateheadquarters.
www.sofiagroup.com
The Scene
•theCommercialFunctionalExpansionZone(商务功能拓展区 ), a 60 sqkm area that extends north andwest from theCommercial Zone thatwill attract largely the samekindofindustriesastheinnerarea,butwithgreaterconcentrationofhotels,culturalfacilitiesandconventioncenters.
Why it's important
TheemergenceofGreaterHongqiao is goodnews for citytenantsbecause ithasbeendrivingdevelopmentofnewhighqualityoffice towers in thewesternpartof thecity.Thesehighqualityofficetowers,ofcourse,arerentingat far lowerpricesthantheywould if locatedmorecentrally,andsooffercompaniesa low-costalternativetodowntownPuxi locations.Moreover,asGreaterHongqiaoattractscompanies fromthecentraldowntownlocations,ithelpsdeflateupwardpressureonrentsinthoselattercongestedareas.
Astheabovechartshows,averagerents inChangningdistricthavelongstayedwellbelowtheaveragesfordowntownPuxiandLujiazui.ThenewofficebuildingsgoingupinGreaterHongqiao,beinglocatedinthefarwestofChangningorbeyond,arerentingevenlowerthantheChangningaveragesshowninthechart.
Consider,forexample,twoofthekeycommercialpropertiesthathavebeencompletedinGreaterHongqiaosofar:
•TheHub,bydeveloperShuiOnLand, isa lifestylecomplexwithofficecomponentadjacenttoHongqiaoAirport. ItsofficespacewasrecentlyrentingforRMB5.6~5.8/sqm/day.RochePharmaceuticals isamong thecompanies thathavealreadymovedin.
•SkySoho,themixed-usedevelopmentdesignedbycelebrityZahaHadid’sstudio,islocatedonesubwaystopfromtheairportandwasrecently leasingspaceforonlyRMB4.3~4.5/sqm/day.Ctriphasalreadyboughta largeamountofspace inthedevelopment.
Trivia
Countlessnamesforareasandpropertiesinthewestofourcitycontaintheword"Hongqiao",fromHongqiaoRoadtoHongqiaoInternationalAirporttotheHolidayInnHongqiaoMinhang.Justwheredoesthewordcomefrom,andwhatareadiditfirstreferto?
YoumayneverevenhaveheardofHongqiaoTown( 虹 桥 镇 ),apartofMinhangDistrictaroundHongmeiRoad. Ithardlyresemblesatown,asithasnodefiningconcentrationofhomesorbuildings,asfarasweknow.AccordingtoBaiduBaike(China'sWikipedia),HongqiaoTownhasahistorythatgoesbacktotheendoftheQingDynasty,andbackthen,thePuhuitangCanalranacrossthetownineast-westdirection, justasitdoestoday.AtsomepointpeoplenoticedthatifyoustandonabridgeoverthePuhuitangafterasummerrain,arainbowoftenappearsinthewest.AndsothetownwasnamedHongqiao,whichisChinesefor"RainbowBridge".
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RMB / sqm / day
Average Office Rents Changning vs Lujiazui vs West Nanjing Road
Changning
Lujiazui
West Nanjing Road
Average Office Rents Changning vs Lujiazui vs West Nanjing Road
BenQ Building
CompletedinJuly2012,thispropertyisinvestedandownedbytheTaiwaneseelectronicsmanufacturerBenQGroupanditsconstructionreceivedanLEED-CSrating(CSstandingforcoreandshell).Highceilingsareoneofitsattractions.
Building quality:GradeB+Address:207SonghongRoadCeiling height:3.1metersRecommended Floor/Area: 2,000sqmRental/sq.m/day:CNY5.0-5.5Total Floors:31Metro:10minwalktoline2,SonghongRoadStationLocation: ChangningAvailability:Spacescurrentlyavailable
SKY SohoBenQ Building
DC Center
ContactSofiaGroupat021-62301919forfurtherinformationonthethreeofficebuildingpropertieslistedabove,orforinformationonanyothercommercialpropertyinthecity.
Property Snapshots
Building quality:GradeA
Address:968JinzhongRoad
Ceiling height:1F4.7meter, 2F-10F3.5meters
Recommended Floor/Area: 1,700sqm-2,200sqm
Rental/sq.m/day: CNY 4.2-4.6
Total Floors:11
Metro:12minwalktoSonghongRoadStation,line2
Location: Changning
Availability:Spacescurrentlyavailable
SKY Soho
Thisuniquemixed-usedevelopmentdesignedbyfamousarchitectZahaHadid'sstudioofficiallyopenedjustlastmonth.Ctriphaspurchased100,167sqmofitsofficespace,leavingdeveloperSOHOwith128,130sqmofofficespaceand25,166ofretailspacetoleaseout.Beautifuldesign,closeproximitytoHongqiaoTransportationHubandahigh-techairfilteringsystemareamongitssalespoints;onthenegativeside,itisagood12minuteswalkfromthesubway,farfromdowntown,andnewtenantsmayneedtodealwithinconveniencesthataresometimesencounteredinbrandnewproperties.
DC CenterCompletedinQ32013,thisdevelopmentisnamedafteroneofitsmajortenants,DigitalChina,aHK-listedcompanythatusedtobepartofLenovo,andwhichpresumablyinvestedinthebuilding.Thetenantmixischieflylocalcompanies.Restaurantsandretailoutletsarelocatedonthefirsttwofloors,andthereisalsoabasementcanteen.
Building quality:GradeB+
Address:567TianshanWestRoad
Ceiling height:2.8meters
Recommended Floor/Area: 3,500sqm
Rental/sq.m/day: CNY 4.5-5.0
Total Floors:9
Metro:minwalktoline2,SonghongRoadStation
Location: Changning
Availability:Spacescurrentlyavailable
Chamtime Plaza
Thismixed-usepropertydevelopedbyShanghai-basedCJLandboaststhelargestopenshoppingmallinthecityandincludesahugeIMAXtheatrethatseats1,820.Itstwelve-storyofficetowersarelocatedontheperipheryofthehugemall.LocatedaratherdistantsevenstopsfromLujiazuiStationalongsubwayline2,thepropertymaybemostattractivetocompanieswithexistingfacilitiesorplanstoopenofficeintheZhangjiangHi-TechParkarea.
Building quality:GradeB+Address:518HaleiRoadCeiling height:2.8metersRecommended Floor/Area: 1,563-2,052sqmRental/sq.m/day:CNY5.0-5.5Total Floors:12Metro:DirectaccesstoJinkeRoadStation,line2Location:PudongAvailability:Spacescurrentlyavailable
Chamtime Plaza
3 Corporate Ave
Raffles City Changning
ContactSofiaGroupat021-62301919forfurtherinformationonthethreeofficebuildingpropertieslistedabove,orforinformationonanyothercommercialpropertyinthecity.
Property Snapshots
Building quality:GradeA
Address:1139ChangningRoad
Ceiling height:2.7meters
Recommended Floor/Area: 1749sqm
Rental/sq.m/day: CNY 7.0-7.5
Total Floors:TBC
Metro:3minwalktolines2,3,and4atZhongshanParkStation
Location: Changning
Availability:Spacessoonavailable
Raffles City Changning
SingaporeandeveloperCapitaLand's2ndRafflesCityprojectinShanghaifollowingtheonebesidePeople'sSquare,thisnewmixed-usedevelopmentwilladdmuch-neededretailandofficespacetothecongestedZhongshanParkneighborhoodwithitsopening,whichisnowscheduledfor2016.
3 Corporate AveOneofthetwobuildingsthatarepartofCorporateAvenuePhaseII,3CorporateAvenueisscheduledtoopeninMaynextyear.WithacovetedlocationbyXintiandiandtheTaipingqiaoLake,andfacilitiesofthehighestqualitydesignedtoLEEDGoldstandards,spaceswithintheofficetowerwillsurelybeinhighdemand.
Building quality:GradeA+
Address:HubinRoad
Ceiling height:2.85meters
Recommended Floor/Area: 2,500sqm
Rental/sq.m/day: CNY 11.0-12.0
Total Floors:31
Metro:7minwalktoline1atHuangpiRoadStation
Location:Huangpu
Availability:Spacessoonavailable
Events Calendar – New Years Concerts and BiennaleThe10theditionoftheShanghai BiennalehaslaunchedandrunsthroughMarch31atthePowerStationofArt.Theoverarchingthemeoftheeventis“SocialFactory:whatcharacterizestheproductionofthesocialandsociety,andhowdoesitrelatetofictionsandhistory?”Manyoftheworksmakereferenceto1978,theyearofChina'sopening-up.Visithttp://powerstationofart.orgformoreinfo.
AttheShanghaiOrientalArtCenter,theBudapest Symphony Orchestra with conductorAndrásKellerplaysaNewYear'sconcertofStraussandDvorakonJanuary3.TheRussian Philharmonic Orchestra andconductorSukachevIgorofferavariedprogramofclassicalworksandChinese,ItalianandRussiansongsonJanuary9th.TicketsareRMB80toRMB1,080.Call4006-466-406toorder.
TheSpanish Flamenco Dance TheatreperformsCarmenonJanuary5th&6thattheShanghaiArtTheatre,466JiangningRoad.TicketsareRMB180–880,andcanbeorderedbycalling62172426or62173055.
COSMOS isthenameoftheopeningexhibitionfortheShanghai 21st Century Minsheng Art Museum (“M21”),whichoccupiestheformerFrenchPavilioninWorldExpoPark.Hundredsofworksby52artistsandfiveartgroupsfrom12countriesareondisplay.OngoingthroughApril19th.
Restaurant Suggestion – Husk Restaurant & Martini LoungeAnelegantatmosphere,warmandsmartservice,andexquisitelydeliciousfoodareafewreasonstochoosethisnewlyopenedrestaurant.Italsohasalongandalluringlistofmartinisandcocktails.
Thestartersandsnacksaresubstantialenoughtoserveasamealforone,andwerecommendthesearedoceanscallopswithbakedcauliflowerandpomelocresssalad:itsuniquemixofflavoursandperfectjuicinessmadeittheculinaryhighlightofourevening.Carpaccioofbeefwithroastedgarlic&goatcheesegratin,grilledhomemadefocacciaislikewiseexceptional.
Wewentvegetarianforourtwomains–tofuandseasonalvegetablesinoystersauce,andrigatoniwithfreshtomato,olives,asparagus,spinach,basilandtomatosauce–bothweredeliciouslysatisfying.Ourdessertoffigandburntbutterwasanothernewandpleasantexperienceforourtastebuds.
Ourmealfortwo,withtwoglassesofwine,cametoaroundRMB650.
HUSK
218FengxianLu,byNanhuiLu Reservations:216245-9137 www.husk-sh.com
Getting Around (1) — Private Jet Charter
Getting Around (2) – Electric Scooters
JusthoweasyisittocharteraprivatejetinShanghai,andhowmuchdoesitcost?Wethoughtsomeofyoumightliketoknow,andsomadesomecalls.
AccordingtoAnthonyLam,alicensedpilotandeditorofJETAsiaPacificmagazine,thelargestjetcharteroperatorinChinaisDeerJet,whichwastheearliestcompanytolaunchacharterserviceinthecountryin1994.AnthonynamedAsiaJetandTAGAviationastwootherleadingcharteroperatorsintheregion.
PeopleseekingtocharterajetoutofShanghaiwillgenerallyonlyfindproblemswithavailabilityduringthepeakseasonaroundChristmasandChineseNewYear,AsiaJetsalesdirectorYanFengtoldus.Sherecommendsbookingtwoorthreemonthsinadvancetoflyduringthatperiod.Otherwise,jetsaregenerallyavailable,buttoensureenoughtimetoobtainflightpermits,whichtakeslongerinChinathanintheUSorEurope,theaircraftshouldbebookedatleast3daysinadvancefordomesticflights,or5to7daysinadvanceforinternationalflights.
CharteringyourjetwillcostroughlyUSD$10,000perflight-hourincludingallexpenses,Yansaid.AShanghai-Beijinground-tripthereforetotalsaroundUSD$40,000.TheAsiaJetfleetincludesseveralGulfstreammodels,suchastheG200,whichseats8to10,aswellasaBombardierChallenger605,whichseatsupto12.
AsiaJetalsohasaJetCardprogramforcustomerswhoflyfrequently.CardholdersneedtomakeanadvancedownpaymentofeitherUSD$250,000orUSD$500,000,andenjoycorrespondingprivilegesincludingdiscountedprices.
WealsoaskedYanwhetherfractionalownership,wheretwoormorepeoplesharethecostsofowningandoperatingajet,ispossibleinChina.ShesaidshebelievesChineseculturalpreferencesandthewaythatbusinessesarestructuredinthecountrywillmakeitdifficultforthefractionalconcepttomakeinroadshere.Shenoted,however,thattheworldleaderinfractionalownership,NetJets,hasrecentlysetupbusinessinZhuhai.DeerJetalsohasapageonitswebsiteofferinghelpwithfractionalownershiparrangements,butinarecentnewsreportacompanyspokesmansuggestedtheideahasyettocatchon.
WonderingwhattobuyfriendsorfamilymembersforChristmas?Perhapsanelectricscooterisjustwhattheyneed.ThenewestfadamongyoungworkersinShanghainow,they'reenvironmental,theyletyouwhipthroughrushhourtraffic,andyoucertainlydon'tneedtopayforparkingthem.Afewoptionsfollow.
IPS
Website:http://en.iamips.com/ Local store address: Unit102,YaoJiangInternationalPlaza,No.308WusongRoad,Hongkou District ThemodelT260canreach20km/hrandtakeyouabout30kmafterchargingthebatteryfortwo-hours.ItsellsforRMB2,999.
Ninebot
Website: www.ninebot.com Local store addresses:1stFloor,ShanghaiStadium,No.666TianyaoqiaoRoad,XuhuiDistrict; No.16,Lane203,HuaqiangStreet,HuaxiTown,QingpuDistrict NinebotE TheNinebotEcanreach20km/hrandcarryyou30kmafterafour-hourcharge.ItcostsRMB14,900.
Segway
Website:www.segway.com,alsoavailableonJingdongorotheronlineshoppingsites. TheSegwaywasthefirstself-balancingtwo-wheeler,andmorethan1,500policeandpublicsafetyorganizationsacrosstheglobehavedeployedSegwayPatrollers.TheSegwayi2,CityVersion,canreach20km/hrandtakeapersonabout38kmafterchargingfor8-10hours.It'scost:RMB90,000
Lastmonth(November)SofiaGrouptogetherwithAboroAcademysupported"OneHeartGiftBag",aprojectofthenon-profitorganizationCRC(CommunityRootsChina)thatsendsgiftbagstodisadvantagedchildreninruralChina.SofiaGroupsponsored20giftbagsthatweresenttoorphanedchildreninGuangxiProvince.ThreeofourteammembersalsodevotedtimeandefforttohelppackthebagsonNovember29th.
Giving Back – Sofia Group Sponsors Gift Bags for Children in Rural China
Market Data & Notes
RentsintheCuraToweronHongqiaoRoad,Xujiahuidistrict,haveincheduptoaroundRMB7.5-8.5/sqm/day.ThisandotherobservationsmakeussuspectXujiahuirentsingeneralaregoingupabit.
About300sqmofspaceopenedupinLujiazuirecently,butofcoursethatamountwon'tdomuchtobringdownrentsthere.
AsnotedinaboveSnapshotsection, offices in Chamtime Plazaarerentingat5.0-5.5/sqm/day.ThatisactuallyhighfortheZhangjiangareaofPudong,wheretheaveragerentismorelikeRMB4.5-5/sqm/day
Office Building Rental Rates by CBD Area: CNY / sqm / day
Shanghai Office Occupancy in Percentage
Ourconsultantswillbedelightedtopersonallyassistyouatanytime.YoumaycallourmainShanghaiofficenumber,(8621)62301919,orcontactdirectlyaconsultantwhohandlesyourspecificconcern:
Sofia GroupYour Shanghai office, industrial and retail property specialists
Amanda Zhu Office rental, Factory rental, Property valuation
languages:English,[email protected]
June Zhang Factory rental, Property valuation, Design & fit-out
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Pascale DahanOffice rental, Retail rental, Property valuation
languages:French,English,[email protected]
Jet GuoOffice rental, Property valuation
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Hans HouOffice rental, Retail rental
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Bjarne BauerOffice rental, Factory rental, Property valuation, Design & fit-out
languages:German,English,[email protected]
Vincent LiuOffice rental, Factory rental
languages:English,[email protected]
Jenny JiangOffice rental, Retail rental, Property valuation
languages:Spanish,English,[email protected]
Jean GaoOffice rental, Landlord contact, Factory rental
languages:English,[email protected]