Large Parts of Shanghai Still Undeveloped

Tuesday, April 14, 2009 10:21
Posted in category Invest in China
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following up on my post last week, Shanghai’s Extreme Expo Makeover, I was speaking with a friend about the current layout of Shanghai’s real estate market.

It was one of those conversations that included a “look at all the cranes”, and gradually progressed into listing off the various developments that have gone idle. Somewhere in the middle of this, I took out my laptop to show him some maps I had created as part of a project last year, and this drove another conversation about how so much has yet to be developed.

With nearly 6 years in Shanghai past, I have seen literally hundred of buildings go up along Nanjing Road, in Pudong, Xujiahui, and along the Huai Hai Road corridor. It is a constant truth in Shanghai that no matter where you are in the city there is a visible crane, and dump truck rolling by, or the clear sign of “progress” coming to the next street.

Sometimes, as I write about in Nanjing Road.. Will the Construction Ever End Part 1 and Part 2, you never see it coming and a street that appears to be filled in… isn’t

Yet so much is still left to do, which brings me to the maps below (sorry for the bold URL address in there, but these are one of a kind and took me forever to construct).

Beginning with Jing An and Pudong, two of Shanghai’s business districts, you will notice three large color groups, Blue, blue, orange and red.

Blue is the new stuff (under 10 years old) – Nanjing West Road with the Portman, with Plaza 66, and it is the Jin Mao tower complex + Lujiazui + century Avenue. Lots of large buildings with shiny glass curtains that can command a premium rent, relative to the rest of the market

Orange is the stuff that is under construction. In Puxi, and I can send plenty of pictures from my balcony, there are huge areas north and north west that have met the wrecking ball in the last 18 months that are now seeing their seedling foundations pop out of the ground – largely of residential properties. In Lujiazui, the scene is very different. that big orange blob is 1/2 world expo and 1/2 new middle class residential area.

Red signifies the areas that are still waiting for “progress” to come knocking on their door, and while the Pudong and Jing An maps may not offer the best view of this, looking at Huangpu, it is immediately clear that some areas are going to go first.

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