Hutchison's 4.6b yuan Shanghai project just the latest by HK property moguls
The landmark 4.65 billion yuan Shanghai Lujiazui deal by Hutchison Whampoa offers encouraging evidence that the mainland property market may be becoming a more disciplined and level playing field for outsiders.
While many local governments are criticised for favouring local interests in official land sale programmes, Shanghai is regarded as the best regulated and most transparent marketplace - although even this reputation has not extended to making tender details public.
Hutchison this week said it had secured an 89,320 sq metre site on Century Avenue in Lujiazui, the financial area of Pudong, for 4.65 billion yuan. It proposes a 380,000 sq metre development on the site and beat off three other bidders to win the tender.
'For Hutchison, 4.65 billion yuan is not a big wager. Hong Kong property moguls are willing to throw big money in simply because the rules of the game are designed to make them feel more comfortable and confident,' said Adrian Ngan, executive director responsible for regional property research at BNP Peregrine.
Better legal protection and transparent proceedings are certain to help in luring international investors to join the once unregulated party. But robust demand for housing and office space remains the main appeal for Hong Kong property developers to rush into China.