Speculators pile into free-trade zone
As Shanghai's business hub takes off, investors lured by the potential for huge price increases are buying property in the zone's Waigaoqiao
For would-be property buyers in Shanghai, the development of its free-trade zone presents a tantalising opportunity.
Just last year, Waigaoqiao - the port area where part of the free-trade zone is based - was hardly a hot property spot.
But the news that Shanghai would develop a Hong Kong-style free port catapulted the area into the international limelight, attracting hundreds of corporate and individual investors looking to secure a foothold in Waigaoqiao.
Residential property prices inside and adjacent to Waigaoqiao have jumped 20 per cent in the past few months as people envisioned a bustling investment magnet taking shape in the next three to five years.
Among them is Chen Shunrong, a middle-aged office worker. "The home prices there are still much cheaper than the prime locations downtown," he said. "But when it is fully developed, I just can't imagine how expensive the apartments there will be."
Shanghai officially put the free-trade zone into operation at the end of last month. The authorities have yet to publish concrete details on what businesses the manufacturers, shippers, traders and financial institutions could operate inside the so-called testing ground for the mainland's further economic reforms.