Shanghai's office market prospect looks positive in light of increasing demand from both domestic and multinational companies despite the global economic dowturn.
Property consultants believe that China's World Trade Organisation (WTO) entry will attract more foreign companies to set up or expand operations in the mainland and fuel the need for more offices.
Office rents in Shanghai have bounced back dramatically since last year on the back of economic growth.
Shanghai's gross domestic product registered US$43 billion (HK$334.5 billion) for the first nine months this year, a 10.3 per cent increase compared to the same period last year.
Foreign direct investment significantly increased by 65.5 per cent to US$5.84 billion. The first three quarters saw the city approve 1,845 new foreign invested enterprises, 35 per cent up year on year.
The absorption of foreign companies is no longer the only contribution to demand, with mainland enterprises becoming the driving force.
