Download - 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

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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


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


Recommended Floor/Area: 1749sqm


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


Recommended Floor/Area: 2,500sqm


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


Pascale DahanOffice rental, Retail rental, Property valuation

languages:French,English,[email protected]

Jet GuoOffice rental, Property valuation


Hans HouOffice rental, Retail rental


Bjarne BauerOffice rental, Factory rental, Property valuation, Design & fit-out

languages:German,English,[email protected]

Vincent LiuOffice rental, Factory rental


Jenny JiangOffice rental, Retail rental, Property valuation

languages:Spanish,English,[email protected]

Jean GaoOffice rental, Landlord contact, Factory rental
