Tiny Bubbles
Let my contribution to the expanding body of “Chinese Economic Bubble” literature/postings be the following observation: commercial rents on Shanghai’s Hengshan Road have – over the last twelve weeks – quadrupled and even quintupled in value, forcing vacancies that are unlikely to be filled at the new prices. For those who don’t know it (most of my overseas readers), Hengshan Road is a busy four-lane boulevard that runs between two very important commercial sections of Shanghai. It is probably best known for a several block stretch packed with bars, many of which maintain thriving (ahem) side businesses. The following properties are located within the very heart of the street, and are currently available.
- Corner of Hengshan Road and Gaoan Road
- 170 m² – does not include the adjacent family-owned fruit stand.
- Price recently reduced from RMB 150,000/month (US$21,428/month), to RMB 120,000/month (Currently asking RMB 120,000/month (US$17,143/month).
- Prior to vacancy, the property was occupied by a Lawson’s convenience store and a coffee shop.
- Neighbors include four dive bars (three of which are, ah, reportedly involved in alternative businesses), a fruit stand, a pirate DVD shop, and a small family-owned office supply store. Nightly neighbors include three separate kebab stands run by migrants. Rumored rents for the other commercial tenants begin at RMB 10,000 (US$1428), and may reach as high as RMB 30,000 (US$4285).
- Located on first floor of run-down twenty-five story residential high-rise with large retiree population. One bedroom rents for expatriates available for as little as RMB 2700 (US$385).

