Shanghai Commercial Real Estate: A barometer of business activity and confidence

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Shanghai is one of the most developed commercial spaces throughout the country, and is also home to the China headquarters of many foreign companies. The demand for office space in the city remains high, with real estate firms now taking advantage of the fresh demand after new government policies were introduced. CGTN reporter Yang Chengxi has the details.  

Shanghai has long been a gateway for foreign firms to enter China. That means office space in this coastal city is a valuable item. Real estate firm Savills says that demand for commercial leasing has been active over the past year.  

SIU WING CHU  CENTRAL CHINA MANAGING DIRECTOR OF SAVILLS  "We have people who are thinking about relocation, expansions. We are talking about size 10 thousand to about 20 thousand square meters. I think the activity in Pudong is still very active. Very difficult to find a big space. Any space over two levels sort of like 4000 square meters plus is still very difficult to locate."  

YANG CHENGXI  SHANGHAI  "Since 2002, more than 600 multinational corporations have set up regional headquarters in Shanghai. 36 new ones were added in the second quarter of this year." 

These offices are often seen as a barometer of the city's business activity. Several multinational firms have already made sure to claim more space in the city.  

SIU WING CHU  CENTRAL CHINA MANAGING DIRECTOR OF SAVILLS  "Recently we've been doing a lot of deals for brands like Tesla, a few electric cars coming in the market, new tenants from Korea of gadgets and mobile phones, Nike sportswear, Adidas and people like that, those guys are expanding very quickly in China." 

The market reflects China's recent trade policies as well, as seen in the demand for retail space from cosmetics companies.  

SIU WING CHU  CENTRAL CHINA MANAGING DIRECTOR OF SAVILLS  "Even for cosmetics. Even going forward, I think a lot of people are expecting there will be some tax deduction on luxury items and also cosmetics. That encourage a lot of people to open shops. That actually gives us a big opportunity for retail business."  

The country lowered tariffs for certain consumer goods in July. As a result, imports of cosmetics products have jumped 75 percent year on year in the third quarter. Now, even more people are eyeing the sector. YCX, CGTN, SHANGHAI.