The global economic slowdown and the after-effects of September 11 affected the Shanghai office market in the second half of last year as office rental growth slowed, according to FPDSavills.
Average grade-A office rents increased 19.5 per cent between June 2000 and the end of last year, but fell 1.3 per cent in the second half, FPDSavills says.
Average office rent in the five most expensive buildings in Puxi is US$24.6 per square metre per month.
Average rent in the five most expensive buildings in Pudong is US$27 per square metre per month. Average rent in HSBC Tower in Lujiazui is US$42 per square metre per month (gross).
The property consultant said office rents in AALittle Lujiazui'' command a premium compared with similar quality office buildings in Puxi. Many multinational and local companies are attracted to Pudong area because of rapid infrastructure improvements and government policy.
Sam Crispin, general manager of FPDSavills, said: AAConsidering the relative cost of the two locations in 1997 this is remarkable, the fact that Lujiazui office space is able to command a premium over similar quality space on Nanjing or Huaihai Roads in Puxi was inconceivable a few years ago.''