Rental prices for land and properties within China (Shanghai) Pilot Free Trade Zone have returned to a rational level following drastic changes in the past year, but demand for industrial use land remains high in the area, according to a report released on Wednesday by commercial property services provider CBRE.

Average rentals of 2.1 yuan (34 cents) per square meter per day within the FTZ before the zone was launched in September 2013 surged to some 6.3 yuan per square meter per day in December 2013, showing high demand for self-use, speculation and long-term investment, according to CBRE.

By the third quarter of 2014, [Hong Kong Company Formation & Registration]average rentals had declined to 4.2 yuan per square meter per day.

Leases of properties for development and research averaged 3.5 yuan per square meter per day with a vacancy rate of 10 percent, and 4.2 yuan for office buildings, with a vacancy rate of 13 percent, CBRE data showed.

The overall price of housing projects surrounding the FTZ recorded a 10 percent increase in the past year, higher than the Shanghai average, the report said.

Some non-market behavior may have affected office building leases within the FTZ, including the fact that some office space may have been reserved for future investment projects, said Sam Xie, senior director for CBRE Research Shanghai.

At the same time, some owners are looking at opportunities to sell rather than lease their properties, as the average selling price has increased from some 10,000 yuan per square meter to 30,000 yuan in the past year, Xie said.

Tne value of land and properties in the zone has grown, CBRE data showed.

"Planners and decision-makers have set various functions for land and properties within the FTZ, which will benefit the parcels and properties," said Xie.

In September, FTZ officials released two circulars concerning land use and plans for industrial development within the zone, making an overall blueprint for a combined space of 28.3 million square meters of land and buildings.

Most of the Yangshan port area and neighborhood of Pudong International Airport have been positioned as land for logistics uses, while Waigaoqiao has been earmarked as a hub for international trade and financial services.

Properties in different regions have recorded varying market responses in recent months.

For factories, [Businesses Registration] average rental was 1.48 yuan per square meter per day, and there were almost no vacancies within the Waigaoqiao area. Warehouses posted an average rental price of 1.53 yuan per square meter per day by the third quarter of 2014.