A report by TH Real Estate, ‘THINK: China’, suggests that the total stock of office space in the Puxi sub-market is currently 5.4 million square metres and could grow by 40% over the next three years. In addition, there are plans to build another 4.5 million square metres of new space near Hongqiao airport. Currently, the vacancy rate in Puxi is around 10% (versus nearly 0% in the Pudong sub-market, which accounts for about half of the Grade A office stock in Shanghai).  Rents in Shanghai roughly halved after the global financial crisis, are a lot lower than those of Beijing and, according to TH Real Estate, could drop further as the new supply comes on line.

Source : August 2015/THRE/Shanghai/OFF