The mainland's expected entry into the World Trade Organisation will help liven up Shanghai's property market, according to the chairman of property developer and construction concern Shui On Group. Vincent Lo Hon-sui was speaking after the signing ceremony of a lease agreement with entertainment complex franchise group and mortgage financier Star East Holdings on Monday. He said more companies were expected to set up headquarters in Shanghai in anticipation of greater trading opportunities. 'I expect more multinational companies will set up their headquarters in Shanghai, and I think more mainland companies will also set up offices here to tap the city's access to international companies,' Mr Lo said. He said Shanghai's property market was still in an adjustment phase, with 'prices definitely still under pressure'. However, he emphasised that price movements varied according to location, construction and management quality. Star East Holdings is to lease a site which forms part of an old town redevelopment project in Shanghai to set up an entertainment complex with karaoke, bar, disco and restaurant facilities. They will pay a basic monthly rent of US$30 per square metre for the 2,000 square metre complex, in addition to a sum which varies according to turnover. The HK$1.2 billion investment in the redevelopment project by Mr Lo's privately held Shui On Property is expected to be paid back in about seven years, with a rental yield of about 7 per cent in the first few years. Star East is presently holding negotiations to set up further franchises in Beijing, Kuala Lumpur and Los Angeles.