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Chongqing government's logistics support policy increases rents

CHONGQING's industrial real estate rents have shot up because of stimulus in the logistics sector, according to a report from the world's biggest commercial real estate services company, Los Angeles-based CBRE (Coldwell Banker Richard Ellis), Xinhua reports.

Rents for high-end logistics facilities in the fourth quarter increased 3.4 per cent from the previous quarter to CNY18.3 (US$3.02) per square metre per month. Most of the companies who rent these premises are third party logistics providers and e-commerce firms.

One of China's largest e-tailers, Jingdong Mall, has signed contract to establish their operations centre and warehouse in the Banan Road Logistics Base, is Chongqing's biggest truck facility.

Global Logistics Properties' (GLP) Banan logistics facility Phase 2 construction is underway and will be completed in 2015. With these facilities, there will be abundant supply for sale or rent.

For the full year of 2013, the price of Chongqing's land for industrial properties grew 9.1 per cent year on year. Most of such land was in Liangjiang New Area, Banan District and Shapingba District. Rent of logistics facilities increased 3.1 per cent.

In 2014, Chongqing plans to accelerate development of logistics facilities along the upper Yangtze. Large logistics property developers are also applying for land in the city to build. Chongqing expects to see the rent of logistics premises rising as large e-commerce companies and forwarders establish themselves in the city.