New deal affects investors in commercial real estate

Wen/Shenong Real Estate Shanghai company General manager because the number of office loans, home purchase numbers are not affected by the real estate, recently some keen investors have begun to invest in the battlefield to commercial real estate, Shanghai office market is less affected by policy, gradually showing a steady upward trend. Office investment Time has been analyzed in January-October, the Shanghai office market turnover area of 11.125 million square meters, the deal data performance is bright.　　Real estate developers have also been bullish on the market, with a big increase in supply compared to last year, with 1.81 million square meters of total supply increasing by nearly 32% over the same period last year. Looking at the situation of Shanghai office market, we can find that the law: office buildings with the market environment, policy impact will fluctuate, but the market supply, turnover area, the price of the transaction is relatively stable, the overall appearance of the rising trend of the year.　　Inflation expectations intensified in 2010, prices included higher oil prices, more money needed to find a way out, and office investment time had come. Continued business return stable sales of office buildings is not accidental, generally mature Office project investment rate of return in 5% to 8%, is expected to recover costs from 10 to 20. In the third quarter of 2010, the average rent of the Grade A office building in Shanghai increased 5.1% to 7 yuan/sqm/day. Puxi office rent in the chain (than the last quarter) increased by 6.6%, the largest increase since the beginning of 2008, the average rent reached 7.0 yuan/square meters/day. In Pudong, rental growth slowed slightly to 3.2%, with an average rent of 6.9 yuan/sqm/day.　　It is based on a relatively stable rate of return, the office market can take the opportunity to get out of the independent market. At the same time, for Office property, the whole of China is still at a primary level. But as the market matures, the prospect of office space is tempting.　　In addition to the one-time proceeds of trading, continuous operation, but also bring rental income, asset prices and land appreciation of the double profits. At present, a large number of funds are urgently needed to find new investment channels, is recovering from the rise of the office market is bound to become the best choice, in early September, the CIRC issued the "interim measures for investment in insurance funds" and "insurance funds investment real estate interim measures", allowing insurance funds to invest in unlisted enterprises　　This is also good news for Office property. Predictably, the prominence of the property value Advantage will make it possible for more investors to shift their investment perspective to the office market under inflationary expectations.