Beijing office rentals versus Shanghai office rentals

You want to create a company, but you are faced with a dilemma: should I move to Shanghai or Beijing? Shanghai, the Pearl of the Orient and the economic capital, or Beijing, the center of political power, the seat of major central administration and many large state-owned companies?

Before deciding you should first learn about the strengths and weaknesses of these two megacities which both exceed 20 million people. Narrow your needs, know the basic data of your business sector and the real estate market in these two cities is the starting point for your decision.

Shanghai-towerShanghai, early development

Given its early economic development and economic freedoms given by central government, Shanghai today is the economic and financial center of China. Surrounded by economically dynamic regions (Zhejiang, Jiangsu), the city is home to many Chinese and foreign companies, and has the largest expatriate community in the country. His early enrichment, and that of its inhabitants, make Shanghai a special city in China.

Rents have reached peaks for long time and are similar to those of major international cities around the world, especially in the center and Pudongdistrict.
The standard of living of the population is the highest in China and the purchasing power of the population, although with different realities, is very high.
The business center…

The large presence of companies in all industries exacerbates competition in Shanghai. Moving to Shanghai is double-edged: more business opportunities with other companies, but more competition and more difficult to get a share.

Its central geographical position is an asset for those who need to travel across China: Beijing in the north, Guangzhou, Shenzhen and Hong Kong to the south are all less than two hours by plane. Shanghai and its surroundings offer a dense industrial network with many companies and factories, facilitating the supply of products of all kinds.

http://images.businessweek.com/ss/06/06/som_skyscrapers/source/6.htm…gradually caught up by Beijing

Beijing city and its surroundings was traditionally an area of heavy industry and the transition to trading activities and services was made later. Beijing is still the headquarters of the majority of large public companies, because of the proximity with political power. Many large Chinese and foreign companies have their headquarters in the CBD in Guomao.

Beijing is also the main home of IT companies and giants such as Lenovo, theworld leader in computers sales and production, and Baidu, the Chinese Google, have their headquarters in the city. Business opportunities with neighboring regions of the Northeast and Shandong, and Tianjin city (100 km from Beijing city) are available.

Beijing vs Shanghai office rentGrowth is not fading

The development of the city is quick: according to recent studies, Beijing has now the highest average salary in China, the subway, which had only a few lines a few years ago, has today fifteen lines joining all parts of the city.

Home or office rents has more than doubled in recent years, but are still a bit more affordable than Shanghai. The difference is not huge but, overall, rents are slightly lower in Beijing.

Another advantage of Beijing is the presence of the largest universities in China. Tsinghua University and Peking University, “Beida”, are considered the most prestigious in the country. And thereare dozens of universities that form a pool of qualified young brains, and thus boost the labor market of the city.

Last but not least, Beijing is the cultural and tourist center of China, the city hosts the most famous sites: Tiananmen Square , the Forbidden City, the Summer Palace and the Great Wall attracts many visitors all years. For activities related to tourism, Beijing is definitely a good choice.

In terms of office rentals, there are many opportunities in Beijing, but it is sometimes difficult to find a good one given the number of ads, the size of the city, and the very different qualities. You can contact our staff if you need advice and information for renting offices in Beijing.

Sources:
http://www.bloomberg.com/news/2013-08-21/beijing-shanghai-office-rent-surge-sends-firms-out-of-downturn.html

http://www.chinadaily.com.cn/beijing/2013-09/03/content_16939532.htm

http://en.savills.com.cn/research/office.aspx

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I am living in China since 2007. I am sharing my experiences for other expatriates to make their stay in Beijing more enjoyable. As I am writing this blog for SCOUT Real Estate agency, I am also computing updates about the Real Estate market in Beijing, not only on residential properties, but as well on commercial locals and offices. Hope you enjoy your reading!