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TODAY, businesses are more global and dynamic than ever. No longer do businessmen or even young entrepreneurs limit their ventures to their own countries.
And among the many Asian countries that the international business fraternity is focusing on is China, and Shanghai, in particular, is viewed as the business gateway to the vast opportunities there.
The world’s top multinational companies already have a presence there, with many having invested significantly and risen to new heights.
Property in particular has shot up in value tremendously, giving early investors handsome appreciation in their investments today.
“In the last 10 years, so much property development has taken place in Shanghai. Prices have shot up to five to 10 times and this has made property investments today in Shanghai less affordable,” says Global Link Properties chief executive officer Norman Sia. Global Link Properties is a real estate company, which specialises in properties in Australia, New Zealand and China.
Sky high prices in Shanghai
In the past, the Chinese government placed most of its attention on the eastern side of Shanghai, in particular Pudong. Since its development in 1990s, Pudong has become the New Open Economic Development Zone, and has emerged as China’s financial and commercial hub.
With the Shanghai Pudong International Airport only 40km away, a concentration of foreign entities and the up-and-coming Disneyland theme park, property in Pudong is now priced up to RMB150,000 (RM71,000) per square metre, exorbitant to say the least.
“Of course there are still property opportunities, but with sky-high prices, investors may not want to take the risk,” cautions Sia.
Unknown to most investors outside of China, the shift has now been made to the western side of Shanghai.
“The western side has fallen behind in terms of development due to the past focus on the east. But recently, the government has announced a policy in its quest to bring up development in Western Shanghai. Property prices are expected to shoot up in the next three to five years when the tipping point occurs,” says Sia.
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