European-style luxury homes in Chairman Mao's old haven in Shanghai buck the trend in the mainland property market
Bucking the trend in Shanghai's slowing market, the developer of 'the most expensive villas' in China has sold more than half of the units in his estate, despite a minimum price tag of 100 million yuan.
Shanghai Deluxe Family Group (SDFG) completed the 18-villa Sandalwood Private Resort in the Hongqiao district at the end of last year and put the homes on the market at between 100 million and 150 million yuan. Each has four storeys with a swimming pool, fitness centre, sauna and mini-cinema. They are built in mock British, Italian, French and Spanish styles, decorated and furnished.
'We have signed contracts for 10 of the units with customers including a white American, Hongkonger, Taiwanese and a mainlander with a foreign passport. They have paid 95 per cent of the price,' said Liu Lin, SDFG sales manager for the project.
'We are targeting the richest people in China who are not so sensitive to price. The revaluation of the renminbi in July was a big encouragement to buy. Nearly all are buying for their own use,' he said.
Part of the attraction is the snob appeal. The estate is next to the Xijiao State Guest House compound where Communist Party and government leaders and foreign heads of state stay when they come to Shanghai. Former Prime Minister Zhu Rongji is rumoured to live in a villa in the compound.