Real Estate

Shanghai Real Estate Market

Shanghai Real Estate Shanghai, China’s largest commercial center, is the home for several thousands of skyscrapers, the unique architecture of theYuyuan Garden, and the world’s third tallest building, the 101 storied Shanghai WorldFinancial Center.  The city has gone through tremendous changes in its real estate sector for the past two decades. Shanghai real estate market has experienced a robust growth since 1990s except a few downturns including the 1999 and 2005 dips.   Despite concerns on rising taxes and sales restrictions, demand has remained high until recently.  The continued economic prosperity has further sustained the city’s real estate market boom, and Shanghai remains a top real estate market in China in terms of sales volumes, floor spaces, and top real estates companies’ total assets.  Until recently,Shanghai real estate market shows no sign of slowing down. 

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 From newly built villas with full facilities and gardens to renovated historical or European styled villas built before 1949, from high rise expat buildings to local dwellings, from serviced apartments to self-catering apartments, from the firsthand to the secondhand, from residential to commercial, there is no lack of varieties in the Shanghai real estate market.  Monthly rental rates for residential properties are various, between 100-520 square meters villas ($2000-$10000 plus) and 50-400 square meters apartments ($700-$4500). Short term residential rental properties are available to travelers who prefer a home environment than a hotel.  Commercial space or serviced offices are charged by a range of daily or monthly rates ($1-$3/sq.m/day plus management and parking fee).  Virtual offices provide business communication and operation needs with limited access to space.

Sale prices for a 90 – 140 square meters apartment, starting a couple thousand dollars per square meter, keep increasing and can cost $ 200,000 to $800,000, pending locations, structures, styles.  An apartment charging as low as $500 per square meter in 1999 might be worth $1000 per square meter in 2003 and $3000 in 2007.  The rule of real estate, location, location and location, still applies.  One small 50 square meter apartment (1 bedroom, 1 living room, 1 bath, 1 kitchen) on a secluded street of the historical French Concession can cost as high as $250,000, and it is considered a bargain.  Only a short decade ago, nobody could imagine it.  Real estate demands and prices, however, have dropped in 2008, but buyers are not stepping away, and simply waiting for the best purchasing opportunities.

Talking about locations, the nine districts in Puxi, urban Shanghai on the west bank of the Huangpu River are: Huangpu (where the city hall, major administration units, Nanjing Road and the Bund are), Luwan (Xintiandi,Huaihai Road), Xuhui (former French Concession), Changning, Jingan, Putuo, Zhabei, Hongkou and Yangpu.  Pudong new district (Lujiazui) is on the east bank of the Huangpu River.  Suburbs and rural areas are divided into eight districts and one county: Baoshan, Minhang, Jiading, Jinshan, Songjiang, Qingpu, Nanhui, Fengxian, and Chongming county (which is an island at the month of Yangtze.)  Some divisions are further divided into townships, subdistricts, neighborhoods and villages. (see Shanghai map)

The government makes lands available for sale primarily through auctions. The companies that purchase the lands will be responsible for building properties and selling the properties to the public.  The residents will hold seventy year long property ownership.  Restrictions have been imposed on foreign investors from investing in the first tier cities like Shanghai, and the implementation of those restrictions will most likely be strengthened, but real estate opportunities in the second and third tier cities or Shanghai nearby cities such as Hangzhou, Suzhou, Wuxi, still exist. Shanghai skyscrapers

Further restrictions on foreign investment, land tax increase, mortgage limit and tighter monetary policy in 2007 may present some uncertainties in the real estate sector, but there is no doubt that Shanghai, with its vibrant growth, rich cultures, and unlimited opportunities, will continue to attract people from all over the country and all over the world.  Shanghai real estate market, the most active property market in China has affected millions of people’s lives and has made many very rich.  Standing among mountains of skyscrapers, you may suddenly think of and miss that quiet, little, old alley you were familiar with, but there is nowhere to be found.