A high price to fork out for rent

BEIJING, May 27 -- Tomson Riviera, a luxury residential development in Shanghai known for its record-setting prices, is scheduled to start leasing some of its properties for the first time today with a monthly rent set at as much as 120,000 yuan (17,300 U.S.dollars ) per unit.

Ten apartments in Block B, each 434 square meters, will be initially launched in the market with rents ranging from 75,000 yuan to 120,000 yuan per unit monthly depending on levels and some differences in design, for example, Tomson Group Ltd, the projects developer, said in a filing e-mailed yesterday to Shanghai Daily.

Tenants are required to rent the apartments for at least a year and those choosing to rent without furniture will be able to move in within a month while those requiring furniture have to wait for two months before moving in, a Tomson Riviera saleswoman who declined to be identified told Shanghai Daily yesterday.

Tenants will also have to pay a monthly 15-yuan-per-square-meter property management fee, she said.

Sceptical note

However, industry experts are sceptical about the developments leasing prospects due to its record high prices.

It is definitely hard to find tenants at such a high (rental) price if no additional services are provided," said Shao Minghao, a researcher with Shanghai Hanyu Property Agency Ltd, a leading real estate services provider in the city. "Good serviced apartments in neighboring areas may be leased at such high prices but for luxury units, it is almost impossible.''

Currently, rents for most of the city's premium apartments of around 300 square meters do not exceed 70,000 yuan per month, industry people said.

Actually Tomson Riviera, in Lujiazui of Pudong New Area, marketed apartments from 110,000 yuan per square meter in 2005, the costliest in the country. The project faced strong public criticism because of its high prices.

Cai Weimin, an industry expert, also questioned the leasing plan.

Out of the question, the asking rent is very high compared to similar projects in the city. Moreover, the few number of units available for lease could also be a big problem. Who would choose to live in such an 'empty' building as only 10 units are leased at the moment?"