Rental Values Shanghai’s average Grade A logistics rents declined to RMB44.70 psm pm as at 2023, down 2.9% yoy. Shanghai’s average rent recorded higher than the nation-wide average rent but decreased slightly from its pre-pandemic levels. The surge in new supply has exerted downward pressure on average rents. Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 50.0 40.0 30.0 20.0 10.0 0.0 SHANGHAI AVERAGE GRADE A LOGISTICS RENTS (2018 TO 2023) 2018 2019 2020 2021 2022 2023 RMB psm pm 44.64 44.91 46.05 44.70 45.32 45.74 Market Outlook New supply injection is expected to add to the existing Grade A logistics supply. As a result, vacancy rates are expected to remain elevated in the short term, which would likely soften rental growth in the coming year. 4.3. KUNSHAN Existing and Potential Supply As of 2023, Kunshan’s total Grade A logistics stock stood at 3.8 million sq m, up 7.8% yoy. The total net new supply in 2023 was estimated to be about 275,000 sq m. Completions included GLP Kunshan Lujia Feiyang Logistics Park, GLP Kunshan Lujia Huacheng Logistics Park, and Sunjade Kunshan Lujia Logistics Park, of about 133,000 sq m, 64,000 sq m, and 78,000 sq m respectively. Approximately 183,000 sq m of Grade A logistics space is expected to be delivered within Kunshan in 2024. Total Grade A logistics stock is expected to reach 4.0 million sq m in 2024. INDEPENDENT MARKET RESEARCH SHANGHAI GRADE A LOGISTICS SUPPLY, DEMAND, AND OCCUPANCY RATE (2018 TO 2023) Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 100 80 60 40 20 0 -20 2018 2019 2020 2021 2022 2023 Gross Absorption (LHS) Net New Supply (LHS) Occupancy Rate (RHS) sq m (million) % 0.5 92.3% 87.3% 85.6% 90.5% 89.9% 82.0% 0.2 0.4 0.6 1.1 0.0 0.4 (0.1)0.0 0.7 0.5 0.5 KUNSHAN MAJOR GRADE A LOGISTICS POTENTIAL SUPPLY IN 2024 Project Supply (sq m) VX Kunshan Huying Logistics 85,000 Vailog Kunshan Qiandeng Logistics Park 98,000 Source: Colliers International Consultancy & Valuation (Singapore) Pte Ltd 72 CAPITALAND CHINA TRUST
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