OFFICE rents in Beijing and Shanghai are likely to become even more expensive this year due to the shortage of quality space, according to a Colliers Jardine report.
The report said average office rentals in Beijing were $55 per square foot per month, an increase of more than 10 per cent over the past six months.
Rentals were expected to rise a further five to 10 per cent before peaking at an average of $58 to $61.50 per square foot during the first half of this year.
The report also expected further rental growth of five to 10 per cent for office properties in Shanghai for the next 12 months.
'Due to the shortage of quality space, all grade A office buildings remain fully let with long waiting lists,' it said.
'However, the large volume of completions expected between 1996 and 1998 will cause rents to level off towards the end of this year before falling in 1996.' It estimated office rentals for grade A space in Shanghai at an average of $54 a square foot per month, an increase of more than five per cent since the middle of last year.