By Sam Crispin, Head of China Research, FPDSavills

Introduction

Pudong is often described in official publications as the 'Dragon's Head' of development for the Yangtze River valley. As the largest and most comprehensive development zone located in China's largest city it is an area that has attracted great interest from foreign companies. Just two years ago the idea of living in Pudong would have been laughable to expatriates and locals alike. Attitudes to Pudong are best summarised by Shanghainese who have an oft quoted saying 'better a bed in Puxi than a house in Pudong'. But times are changing and expatriates and locals alike are moving to the new area as it becomes clear that the area has much to offer in terms of recreation, amenity and a sense of space that is missing from most parts of Puxi. Locals are increasingly convinced of Pudongs merits and major new domestic sale apartment projects in the area are selling well, as much as 50 per cent of new apartments are being sold to Puxi residents.

For expatriates considering moving east or new arrivals to the city there are now a number of attractive housing options available all of which have the combination of international schools and golf as well as other facilities on site or within easy reach. Pudong developments offer value for money compared to similar projects in Puxi and while vacancy rates were high these have fallen considerably in the second half of 1998. The average vacancy rate for Grade 'A' residential projects in Pudong has come down from 57 per cent to 40 per cent during the past 12 months which reflects the maturing market, slowing new supply, the growing acceptability of living in the area and superior quality of new Pudong properties. The better quality villa and apartment developments are outlined below:

Shanghai Links Executive Community

Shanghai Links located in Huaxia Cultural and Tourism Zone near Pudong International Airport is the largest scale high-grade residential development in Shanghai. The project will offer a total of 476 North American style low density homes and 315 apartments when all phases have been completed. There is also be an 18 hole Championship Nicklaus Signature golf course on the site.

The first batch of 50 units were completed in late June 1998. The project also includes an American School (open since September 1998), a Club House, a marina and other facilities. Units are to be offered for lease only at an average of US$34 per sq.m. per month (excluding management costs), although some corporate clients have taken up the offer of custom built houses and long-term leases.

The Four Seasons

The Four Seasons developed by Hutchison Whampoa is located in the Huamu area of Pudong east of Lujiazui Finance and Trade Zone. Phase 1 offers 96 villa units with sizes ranging from 203 sq.m. to 395 sq.m. (excluding basement area) in five different configurations. 35 units are retained for lease and the remainder are offered for sale at asking sales prices of US$1,850 per sq.m. Asking rents for fully furnished units are US$16 per sq.m. per month including management.

Green Villas

Green Villas is located in Jinqiao Export and Processing Zone near Concordia International School and the new Carrefour Hypermarket. Phase 1, comprising 33 North American style wooden villas on two artificial islands is already welcoming tenants. The whole project will have 70 villas in total and a clubhouse. Asking rents are US$28 per sq.m. per month furnished and US$25 per sq.m. per month unfurnished. The sales price is US$1,950 per sq.m. gross, not including an additional charge of US$385 per sq.m. for the garden area.

Tomson Golf Villas.

Phase 1 of Tomson Golf Villas, on Longdong Road offers 75 villas with sizes ranging from 302 sq.m. to 590 sq.m. on a site that includes Pudong's first Golf Course. Asking sales prices are US$1,904 to 2,119 per sq.m. The villas are 85 per cent leased out at average rents of US$23 per sq.m. per month and management fees are US$240 to 360 per month depending on the size of the unit.

Phase 2 of Tomson Golf Villas, comprising 58 detached and 38 semi-detached villa units, was released for sale in mid 1998. The units range in size from 180 to 702 sq.m. and the asking price for the detached units is US$1,850 per sq.m. and US$1,600 per sq.m. for semi-detached units on average.

Amenity Garden

Amenity Garden is one of the best designed, constructed and finished residential projects in Shanghai, the great pity for the developer is that it is in Pudong - if this project was anywhere in Puxi within the inner ring road it would be fully occupied by now. A measure of the care taken in maintaining quality of finish is that this was the only building site where workers wore slippers in the later stages of construction.

The project is developed by Matsushita Electric of Japan. The Japanese feel of the development puts many western families off as most are simply not in the habit of sitting down to take a shower and then taking a bath, whether it makes more sense or not. 2 towers are available providing a total of 466 units in sizes from 66 to 172 sq.m.

Conclusion

While the choices in housing are plentiful, the question that remains for many choosing between living in Pudong and Puxi is where to go out for dinner / a beer / shopping and so on. For entertainment and shopping the choices are getting greater on an almost daily basis, so much so that advertisements proudly announce that it is no longer necessary to go to Puxi to buy a computer, progress indeed.

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