Operating Cost
2014年05月12日 14:03

Land, factories and office buildings

 

Foreign companies may purchase land-use rights, but cannot own property outright

• Companies cannot own land in China. Land is utilized by paying a one-time fee to the local government in exchange for a land-use rights certificate, typically allowing 50 years of usage for industrial land.

• The price of land-use rights are regulated by the Changzhou Municipal Government through a system of benchmark prices for different grades of land.

- industrial zones have their own price schedules for land-use rights based on Changzhou's Benchmark Land Price Scale (BLPS). Actual prices are subject to negotiation with the specific zone; the land is with basic site service such as water and electricity supply, and connections to a main road.

- according to current regulations, landuse rights are obtained through public bidding, auctions and public posting of available land.

Sources: (1) Changzhou National Hi-Tech District

      (2) Jiangsu Wujin Hi-Tech Industrial Zone

 

FIEs can build factories or rent prebuilt standard ones in the industrial zones

• The time to construct a standard steel frame factory is 120-150 days, and around 180 days for a steel-reinforced concrete factory.

• Annual rent for standard factory space varies from USD 20/㎡ to USD 28/㎡ depending on the amount of space needed.

• A "standard factory" refers to a six-floor steel-reinforced concrete factory with a floor area of 1,000 ㎡, and a height of four to five meters without columns.

Monthly rental for office buildings in the business district is about USD 6.1/㎡

• High-end office buildings are located in downtown Changzhou, with convenient access to the airport, railway stations and the two zones.

• Monthly rental for these buildings is typically USD 5.3/㎡, with a monthly management fee of about USD 0.81/㎡, resulting in a total cost of USD 6.1/㎡.


   Source: "Market Observation", CBRE, 2009

 

 

 

Sources: (1) Changzhou National HI-Tech District, www.czxd.gov.cn

                 (2) Jiangsu Wujin Hi-Tech Industrial Zone, www.wiz.org.cn

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