Around 20% of plants and factories, totaling 25 million m2, have been left idle in Shenzhen, Guangdong province since February, dragging rentals price down 16.5% so far, the local real estate leasing information authority said Thursday. Nearly half of the plants built after the 1980s were vacant even if their rentals prices plummeted to ¥10, or some even ¥5-6/m2. Dongguan, a Guangdong province city that makes small merchandises for export purposes, reported 38 million m2 of idle factory properties by last November, meaning a vacancy ratio of 20% and rentals dropping from ¥10-12 to ¥7-9/m2. More than 300 closures of industrial property agencies were seen across the city in 2008.
$1 = ¥6.8