Logistics property rents reach record high in Beijing

The average net effective rent of Beijing logistics property rose to a new high of 33.20 yuan per square meter per month in the third quarter, real estate service provider Colliers said in a report on Tuesday.

That represents an increase of 2.78 percent quarter-on-quarter. Demand for quality logistics property remained strong in this quarter and the vacancy rate continued to rest at a low level, as most new supply was digested prior to its completion, according to the report.

The growth of online shopping means demand for logistics property should remain healthy, with companies sourcing from e-commerce and third party logistics enterprises, the report added.

Asset performance of Beijing's logistics property market is expected to be positive for the remainder of the year and for 2013. A rise in rent across the sector is likely on the back of limited new supply and sustained strong demand, assuming that the existing economic conditions and market fundamentals continue.