Boom in Shanghai Real Estate Industry

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Last updated at: (Beijing Time) Monday, October 28, 2002

Boom in Shanghai Real Estate Industry

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Shanghai, one of China's economic powerhouses, has set new records for real estate investment, scale of housing construction and house sales, according to the city's housing, land and resources administration.

Shanghai poured 56.5 billion yuan (6.8 billion US dollars) intothe real estate sector in the first nine months of this year and the figure is expected to exceed 70 billion yuan for the whole year, said Director Cai Yutian of the administration.

In the early 1990s, the city's investment in the real estate sector was less than 1 billion yuan (120 million US dollars) annually. In 2001 the figure reached 63 billion yuan (7.6 billion US dollars).

The city completed the construction of commercial buildings with a combined floor space of 11.94 million square meters in the January-September period of this year, a rise of 48 percent on a yearly basis. The total floor space of houses under construction was 59 million square meters in the same period, up 23 percent.

In the early 1990s, the total floor space of houses sold in Shanghai annually was less than 1 million square meters. This figure grew to 17.97 million square meters in 2001 with 98 percentof this being bought by individuals.

In the first nine months of this year, houses with a total floor space of 14.04 million square meters were sold, a rise of 62percent on a yearly basis. It is expected the figure for the wholeyear will exceed 20 million square meters.

Statistics show that the added value of the city's real estate industry accounted for 6.4 percent of its total gross domestic product in 2001, compared with 1.4 percent in 1991. The ratio is expected to reach 7 percent this year.

The per capita floor space of urban Shanghainese was 12.5 square meters in 2001 and this is expected to reach 13 the end of this year.

It is predicted that investment in Shanghai's real estate sector will stay at 65 billion to 75 billion yuan (7.8 billion to 9 billion US dollars) annually over the next few years, when 17 million to 18 million square meters of houses will be sold.

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