Shui On Construction and Materials plans to include more commercial and recreational features in its 40-hectare Rui Hong Xin Cheng residential project in Shanghai. Vice-chairman Wilfred Wong Ying-wai said it needed to update the project to meet demand of buyers. 'The original blueprint of the project was made in 1996. It's a bit old now because Shanghai has been changing rapidly in the past few years,' Mr Wong said. 'Although the project has excellent location, neighbouring an MTR station, we need to add more interesting facilities to draw buyers.' Mr Wong said Shui On was considering many ideas, including shopping arcades, serviced apartments, elderly homes and parks, but details of the latest plan had not been finalised. Rui Hong Xin Cheng is Shui On Construction's first venture in the Shanghai market. The company acquired the project last year from its major shareholder. It was held previously by Shui On Properties, a company owned privately by group chairman Vincent Lo Hong-sui. Shui On Construction takes over the project from the second phase. The site in the Hongkou district of Puxi could provide 16,000 to 17,000 flats. Initial plans are for a 1.42 million square metre high-rise development, with 250,000 sq metres of shopping arcade and 50,000 sq metres for facilities. Phase one of the development, of which Mr Lo retains private ownership, is expected to be completed this year. It has been on sale since last year at an average of 6,800 yuan (about HK$6,370) to 7,000 yuan per square metre. Mr Wong hoped to release the 1,500-unit second phase of the project for public sale in the second half of this year. Meanwhile, Shui On Construction also is expanding its construction material business in China. Most new flats are sold as empty shells, with almost no furnishings or fixtures as many home-buyers prefer to fit out flats on their own.