Shanghai's residential leasing market witnessed moderate rental growth in the second quarter, fuelled mainly by demand from domestic clients, global real estate consultancy Savills said yesterday.
Average rents climbed 1.8 percent quarter on quarter to 195.2 yuan ($28.6) per square meter per month during April-June. Increases were seen across all three sub-markets, Savills China said in its latest report.
Rents for strata-title apartments rose 3.3 percent, out-performing the 1.5 percent growth for serviced apartments and the 1 percent gain for villas.
"Demand from domestic entrepreneurs has been rising rapidly while increasing talent localization and shrinking accommodation budgets at multinational companies as well as health concerns caused by hazy weather have led to a decline in demand from expatriates," said Liza Wu, director of Savills Shanghai residential leasing.
Occupancy rates remained at more than 80 percent. The market is expected to remain stable with Pudong New Area seeing strong demand, boosted by the growing number of financial companies in the area and in the Pilot Free Trade Zone.
