We will define two types of residential properties in the Shanghai market. "High-end residential" properties are defined as residential facilities targeted to expatriates or very high income individuals or families. These properties are located in mostly the inner-city core and offer clubhouse facilities and other services, and are managed by a professional management company. The majority of these units are around the 100 to 120 square meters or above.
"Luxury residential" properties are spaced around 150 square meters or above, located in prime locations and offer superior management with better property finishes and construction materials.
One of the more noticeable projects completed this past year was Lakeville in LuWan district, close to Xin Tian Di. The reported selling price for these units were between USD2,000 to USD2,500 per square meter and they range in size from 100 square meters to 425 square meters. Lakeville also features large townhouses. Joanna Real Estate had listings of these units renting for USD 1,700 for a 110 square meter, 2 bedroom unit to USD 5,500 for a 3 bedroom, 220 square meter penthouse.
Tomorrow Square, the much-anticipated Marriott Hotel, retail and service apartment complex officially opened in October 2003, which features 1 to 3 bedroom units, ranging in rental prices from USD1,900 to USD5,800.and the sizes are between 49 to 170 net square meters. Because of its excellent central location, there will be an anticipated high demand for this property.
Rental prices remained stable at USD19.41 per sqm the last 2 quarters. From the first quarter to present, there was a change of US200 to USD300 increase for the same apartment or villa. The important item to remember is that the lower floors were rented out first so there is a higher charge for the higher floors.