Lujiazui: key is infrastructure projects
Jones Lang Wootton, in an analysis of Shanghai's office development market, has
LUJIAZUI is the designated 28 square kilometre finance and trade district of the Pudong New Area, Shanghai's most recent development zone.
Pudong is located on the east bank of the Huangpu river directly opposite the Bund, comprising about 520 square kilometres of land, which will be developed in phases.
To encourage development in Pudong, the Chinese Government offers preferential policies and various tax exemptions.
Huge office development is now planned for the area.
Both the national and municipal authorities are keen to support the emergence of Lujiazui and have encouraged the Shanghai Stock Exchange to relocate there in early 1997.
However, JLW says the pace of development of Lujiazui and its success will depend upon the completion of key infrastructure projects, most importantly the second underground metropolitan railway line and the second cross harbour tunnel, which will link Puxi and Pudong.
There are three other special Pudong trade areas and bodies within Pudong : Zhangjiang Hi-tech Park, Jinqiao Export Processing Zone and Outer Gaoqiao Free Trade Zone, which have listed on the Shanghai exchange. Lujiazui Finance and Trade Zone Development Co, the body charged with overseeing the development of Lujiazui, listed B shares on the Shanghai Stock Exchange last month.