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MARKET OVERVIEW
SHANGHAI
BANKING AND FINANCIAL SECTOR SUMMARY
39%
52.58
6.0%
Banking and Financial Sector Trends
Mainland China’s economic hub, Shanghai, is home
to a booming financial sector, increasingly driven
by domestic firms that are voracious users of oce
space. According to data from DTZ/Cushman &
Wakefield Research, the banking and financial
sector’s share of oce leasing activity (by number
of transactions) increased by 12 percentage points
year-on-year (YoY) to 39% as of the end of 2015. The
rapid growth of China’s internet finance industry has
helped fuel a proliferation in the number of financial
institutions in Shanghai; growing by 93 in 2015,
including 17 monetary financial service providers, 57
capital market service providers, and 19 insurance
companies, according to the Shanghai Statistics
Bureau. However, the ongoing rollout of tougher
regulations on peer-to-peer (P2P) lending in 2016
has tempered the growth of this new sector. This
has significantly curbed leasing demand from P2P
firms in the first two quarters, dampening overall
demand in the Grade A market. Seeking to cut costs,
a number of banking and financial institutions have
moved their oces back to the city’s decentralised
business parks, including call centers, clearing house
operations, and some e-banking services.
Outlook, Opportunities & Strategies for Occupiers
Looking ahead, the massive amount of Grade A oce supply to
completed between 2016 and 2021 will provide occupiers with great
options in decentralized areas. Tenants are also likely to enjoy greater
bargaining power for renewals and new leases in these emerging, non-
core submarkets. Amidst a wave of oce decentralization programs,
mature business parks such as Zhangjiang and Caohejing are likely
to attract a growing number of banking and financial institutions,
primarily domestic, that are looking for high-quality but cost-e¥ective
premises.
% Occupancy by
Financial Sector
Prime Rent
(USD/Sf/Year)
Rent Growth
(YOY in local currency)
Key Banking and Financial Services Sector Lease Transactions – 2015/2016
PROPERTY
SF
TENANT
TRANSACTION TYPE SUBMARKET
Shanghai Tower
129,167
Ant Financial
Lease
Pudong
Century Link
64,583
PICC
Lease
Pudong
Century Metropolis
53,820 Zheyin Investment
Lease
Pudong
Century Link
21,528
Caitong Securities
Lease
Pudong
SWFC
18,299
Jiangnan Rural Commercial Bank Renewal / Expansion Pudong
SWFC
17,222
Jiangxi Bank
Lease
Pudong
Key Banking and Financial Services Sector Sale Transactions – 2015/2016
PROPERTY
SF
BUYER
PRICE
(US$ MIL)
PRICE
(US$/SF)
SUBMARKET
Corporate Avenue Blocks 1 & 2 895,072 Link Reit
1,063
1,188
Huangpu
SOHO Century Plaza
462,357 Guohua Life
497
1,074
Pudong
East Asia Bank Building
457,466 ARA
462
1,011
Pudong
Looking forward, leasing demand from the banking and
financial sector is expected to continue to increase. Although
the growth of the P2P industry is likely to slow down due to
the tightening of regulations, occupiers from the traditional
financial sector are expected to continue to expand steadily.
Moreover, banking and financial institutions are always
active in the en-bloc o ce sales market.
- Leslie Jin, Occupier Services
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