Shanghai apartment rents fell 1.5% in 2013 to an average of 146.2RMB/sqm/month,Puxi fell 1.2% to 157.4 RMB/sqm/month. Meanwhile, Pudong apartments fell 1.7% to 139.0 RMB/sqm/month. Continuing from 2012, city wide high-end apartments are competing with serviced apartments in recent years in Shanghai. The property management of Shanghai apartments has improved and therefore the overall comfort level of expats living there. Expats who have in later years of their assignments moved over to private landlords properties may also be very comfortable living in larger unites for a lower price point.
In 2013 Shanghai serviced apartment rents fell to 229.5 RMB/sqm/month and 262.9 RMB/sqm/month respectively. The citywide average was 246.7 RMB/sqm/month. Citywide occupancy rate fell to 89.8% with Puxi and Pudong occupancy at 89.6% and 90.5% respectively. Lanson Place Jinlin Tiandi returned to the market in Q4 of 2013. The project features units with more contemporary interiors than before the renovation. Times Square re-opened in Q4 of 2013, adding 131 units to the serviced apartment market. The Bund Residence, located in the riverside area of Huangpu, opened in Q3 of 2013, bringing 212 serviced apartment sized between 73sqm (one-bedroom units) and 305sqm (four-bedroom units) to the market. Demand for Shanghai serviced apartment has stayed flat for the second half of 2013. Affordability has not changed and many of the same projects that were popular in the first half of 2013, namely high-end projects, have kept their popularity.
In 2013 Pudong villa rents rose by 0.5% to an average of 137.6 RMB/sqm/month while puxi villa rents rose by 0.8% to 127.4RMB/sqm/month. Citywide, the increase was 0.4% to 141.1 RMB/sqm/month. Occupancy across Shanghai rose 0.8% to 87.5%, while Puxi and Pudong occupancy rates were 86.8% and 91.2% respectively. The Shanghai villa market in the second half of 2013 was active in terms of leases signed and leases expiring due to the seasonality of the villa market. The market is rather heavily related to the international school calendars which those expat families are following. The in and out flow of tenants this year was about the same resulting in a rather flat demand.
