Economic crisis cuts Shanghai rents by 15%

Shanghai expats willing to negotiate their own deals with individual landlords are likely to strike better bargains thanks to the weakening economy.

Shanghai's rental market saw an overall 2.2 percent decline in prices in the fourth quarter in 2008. Though the drop is relatively minor it is enough to give renters the upper hand, according to James Macdonald, from Savills China, a commercial and residential real estate service agency.

"Landlords are much more willing to negotiate with tenants, maybe not always dropping down rents, but being a little more flexible with certain agreements in the leasing contract," he says.