Shanghai Real Estate & Lifestyle_December
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December NEWSLETTER Table of Contents Market Insight – Da Hongqiao Rising The Scene Property Snapshots – Sky Soho, CD Center, BenQ, Raffles Changning, 3 Corporate Ave, Chamme Plaza Events Calendar – New Year’s Concerts, Biennale Restaurant Suggeson — Husk Geng Around (1) — Private Jet Chater Geng Around (2) — Electric Scooters Giving Back — Sofia Group Sponsors Giſt Bags for Children in Rural China Market Data & Notes Helping you to find and design the office you want. Call us at 021-6230 1919 The Rise of Greater Hongqiao As our newsletter reader, you likely know that Hongqiao is an area in western Shanghai, and probably associate the name with the Gubei residential area and Loushanguan Road where many businesses and consulates have offices. If you’ve been paying attention to the local news, you may also have heard of Greater Hongqiao (in Chinese, Da Hongqiao), the area at the center of the Shanghai government's plan to transform western Shanghai into a booming economic growth engine analogous to Pudong in the east. The Greater Hongqiao development plan obviously means big things for the city’s commercial property market, and so merits some examination. What and where is it? As a geographic area, Greater Hongqiao, as we understand it, is currently being interpreted in two ways. First, as detailed on China's Wikipedia Baidu Baike, Greater Hongqiao refers to a distinct 86-square-kilometre (sqkm) area in the west of the city that begins a little east of Hongqiao Airport and extends westward about 10 kilometers, stretching north-south about 10 kilometers as well. The area includes the Hongqiao Transportation Hub, with its bullet trains and buses connecting Shanghai to the rest of the Yangtze River Delta. In terms of districts, the area encompasses parts of Changning, Minhang, Qingpu and Jiading. Second, “Greater Hongqiao” is sometimes used more loosely to refer to all the western parts of the city that will be economically and functionally integrated with the above area. Hence, many local Chinese media reports have described Greater Hongqiao as encompassing the whole of Changning district, which includes Zhongshan Park and other areas within the inner ring road. Having two interpretations of Greater Hongqiao's borders is not as illogical as it might seem, because unlike the districts that it is comprised of, Greater Hongqiao itself is not an administrative division of the city. It is rather an area delimited based on its intended economic and urban functions. And since these functions overlap and complement the functions of adjacent areas, just exactly where the borders lie on the functional level may not be so distinct, or for that matter important. The development plan for the official 86-sqkm area has two main parts: •the Hongqiao Commercial Zone ( 虹桥商务区 ), a 26-sqkm area with surrounding green belt that encompasses the Hongqiao Transportation Hub (Hongqiao Airport, Hongqiao Railway Station and Hongqiao Long-Distance Bus Center) and that the city intends to make a center for modern service industries, international trade and corporate headquarters. www.sofiagroup.com
Transcript of Shanghai Real Estate & Lifestyle_December
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
Helping you to find and design the office you want.
Call us at 021-6230 1919
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
languages:English,[email protected]
Pascale DahanOffice rental, Retail rental, Property valuation
languages:French,English,[email protected]
Jet GuoOffice rental, Property valuation
languages:English,[email protected]
Hans HouOffice rental, Retail rental
languages:English,[email protected]
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]
