Shanghai Real Estate Prices Beat Beijing For
First Time
For the first time, real estate prices in Shanghai have
overtaken Beijing prices. According the latest numbers
released by the Bureau of National Statistics, the average
price of Shanghai real estate came to 5118 yuan (US$618)
per square meter.
The numbers, which were just released by the National
Bureau of Statistics of China, show that Shanghai
real estate prices have gone up by 24.2 percent since
the last compilation. The only Chinese provinces to show
such rapid growth are Shanxi and Jiangxi. In Shanghai,
the main reason for the fast rate of growth has been foreign
investor's money coming into the rapidly growing metropolis.
In July 2003, Morgan
Stanley was the first foreign investor to invest in
Shanghai commercial development. This year, Morgan Stanley
is expected to invest in more luxury apartment development
in cooperation with the Shanghai Fudi Group.
Most of the foreign investment in Shanghai has been focused
on luxury real estate development. Most prices have been
between 5700 - 15,000 yuan per square meter, and have
been concentrated in the Hongkou, Xuhui, Pudong and Qingpu
regions. Chinese observers said that these new foreign
financed projects have quickly pushed up real estate prices
in Shanghai.
The statistics mentioned that real estate prices in China
went up by an average 3.8 percent last year, and the average
price of real estate was 2,379 yuan (US$287) per square
meter. Residential real estate was 2212 yuan (US$267),
and had gone up 3.9 percent, while commercial real estate
was 4293 yuan (US$518), and went down 1.4 percent. Retail
store frontage was 3739 yuan (US$452), and had gone up
4.5 percent.
In 2003, the real estate index started high at 109, and
ended the year at 106. In the past year, the Chinese government
implemented a series of measures to cool prices down.
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