Shanghai Mayor Unveils New RE Plan to Attract
Taiwan, Foreign Investors
In an effort to combat rising real estate costs in downtown
Shanghai, Mayor Chen Liangyu has unveiled a plan to develop
three new communities.
The plan is unofficially known as Plan 173, as the total
area of the three communities in Songjiang, Jiading and
Qingpu totals 173 square kilometers. It was developed
as a result of business discussions with major Taiwan
businesses including TSMC,
Kuangda and Sun Moon Star. In informal discussions with
the Shanghai city government, all three companies complained
of high business setup costs in downtown Shanghai.
Currently, Shanghai lists as the 14th most expensive
to do business in worldwide because of high business setup
costs. In some instances, Taiwan businesses have chosen
to set up in other cities, such as Nanjing, because of
the high business costs. This new effort reflects the
determination of the Shanghai city government to keep
Taiwan businesses in the Shanghai city area.
Taiwan businesses are important to China's economic development
because the major players are concentrated in the high
technology area, which is an important area for economic
growth.
The Shanghai city government has not yet announced what
specific cost benefits will be made available to investors
in these new areas.
In related news, Shanghai will hold two real estate exhibits
in July. These exhibits were originally scheduled to be
held in April, but were canceled because of the SARS crisis.
Both exhibits are focused on retail home buyers in Shanghai,
as well as investors coming from overseas. One will be
held July 1-6 at the Shanghai Exhibition Center, and the
other will be held July 3-6 at the Shanghai International
Conference Center.
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