Business representatives line up at the China (Shanghai) Pilot Free Trade Zone Comprehensive Service Center to register their offices in the 28 sq km area. The center has been receiving at least 500 calls or e-mails a day, most of them applications to open new offices. [Photo / Provided to China Daily]

Price of commercial space skyrockets in response to booming demand

Thousands of domestic companies have flocked to register at the Shanghai Pilot Free Trade Zone, despite the lack of clarity on the reforms it will bring.

This has prompted calls for new rules to keep a lid on the number of applicants, as a quality-control measure.

The FTZ service center, which was put into operation on Oct 8, has been receiving at least 500 calls or e-mails a day, most of them applications to open new offices in the 28 sq km area. Three times as many people have been visiting the center in person to learn more about the FTZ and how they can get involved in it.

"We're still not very clear about the policies, but we'd like to register a branch in the FTZ right now," said a young business manager surnamed Zhang, who was visiting the center earlier this week.

"There won't be enough space for latecomers," added the man, who said he has worked for a State-owned chemical trading company for the last eight years.

He said he had been authorized by his company to buy an office on the site, but was surprised to find that the price already exceeds his company's initial budget.

According to a research report by real estate service provider CBRE Inc, the sale prices of office space in the FTZ have soared 20 percent since September. Some of the prime office buildings already cost the same as the priciest areas in downtown Shanghai, despite the fact that they're located some 20 km away from the city center.

The average daily cost of renting office space in the FTZ has also doubled since July to 4.2 yuan ($0.68) per sq m. Some buildings have seen their rent triple over the same period.