Investors seeking to identify the most promising investment opportunity for the 21st century need look no further than Shanghai. It is the fastest growing city in the world’s fastest growing economy – the potential is almost limitless.

In the 1850’s it was London, in the 1900’s New York and in the 1960’s Tokyo - three cities where a phenomenal rate of economic growth earned fortunes for shrewd investors in real estate.

Today’s opportunity lies in Shanghai, where the authorities, capitalising on China’s open-door economic policy initiated in the 1980’s, intend to create the world’s most important centre for finance and commerce in the not-too-distant future. And by international standards, real estate in Shanghai is substantially undervalued.

There are several indicators to their forward-looking policy, including:
• The World Trade Organization (WTO) has now moved its headquarters to Shanghai.
• By 2007 Shanghai will have the world’s tallest building.
• Construction has now commenced on what will be the world’s largest freight terminal.
• Shanghai hosts China’s most important stock exchange, in Pudung.
• Pudung International Airport has a potential capacity greater than London Heathrow, which will be quadruple in size before 2010.
• Shanghai will host the 2010 World Expo.
• Work has started on the world’s first commercial magnetic-levitation train, a 450km/hr link from Pudung International Airport to the city’s financial district.
• Shanghai boasts the world’s largest single-arch bridge.
• Twenty-two metro lines, comprising 570km of track, will be functioning by 2010.
• Shanghai will join Beijing in hosting the 2008 Olympic Games.
• Shanghai recently became a host city for the Grand Prix Formula 1 world circuit.
• It has more McDonalds, Starbucks, KFC’s and Pizza Huts per capita than anywhere else in the world.

Real estate in Shanghai

The city of Shanghai is divided by the Huangpu River. To the west is Puxi, the traditional heart of the city, where British and French colonial architecture is intermingled with modern skyscrapers. Puxi offers investors stable growth and healthy rental returns.

To the east of the river is Pudung, the city’s new financial district. Real estate prices there are considerably lower than those in London, New York or Tokyo, and the potential for capital growth is very significant.

The rapid growth in value in Shanghai is driven in part by the huge increase in foreign investment and the fact that many large international corporations are relocating to or opening branch offices in the city. Demand for property is now outstripping supply, while the demand for residential accommodation is boosted by the increase in local wealth, as well as the growth in population of both local and foreign workers. Chinese authorities also view real estate as a key investment goal, which in turn contributes to the phenomenal growth in Shanghai property value.

As a specialist in Shanghai real estate, I would not suggest a Shanghai property purchase as a holiday home, but would view it as one of the best investment opportunities that money can buy right now. As proof, many individuals and companies have already been bitten by the Shanghai bug and have had excellent returns to date. Many have in fact re-invested their profits for a bigger piece of the Shanghai pie.



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