AVERAGE office prices in Shenzhen soared to 25,146 yuan (US$3,800) per square meter in 2010, a 25-percent increase compared with the previous year.
Insiders said the spike in office prices was mainly due to a smaller supply of office space and most high-end office buildings finished last year were only for rent.
Also, regulations curbing the housing market had driven speculators into buying office property because of good lease returns, the Shenzhen Economic Daily reported yesterday.
Office prices had been rising each month, from 22,159 yuan per square meter last January to 27,778 yuan per square meter in December.
Prices hit 26,572 yuan per square meter in February when sales of high-end offices in Chegongmiao in Futian District boosted the average price.
Sales of offices of 500 to 1,000 square meters increased 4 percent over 2009 prices and those above 1,000 square meters increased by 1 percent, according to statistics provided by Shihua Real Estate.
Offices in Bao an and Longgang districts accounted for about 70 percent of last year s sales.
Speculators said offices and shops in the two districts had good appreciation potential and the return ratio was better than apartments.
The revival in the economy had brought about demand for offices and shops, said Xiao Xiaoping, director of Shihua Real Estate s market research center.
The opening of several Metro lines would also add value to the office and shop market in Bao an and Longgang districts, he said.
The average office price in Shenzhen in 2009 was 20,131 yuan per square meter and 18,526 yuan per square meter in 2008. (Tina Chen)
