The huge investment in infrastructure in Shanghai to prepare the city to host the World Expo will open up more development hubs, according to property consultants.
The six-month event, which opened on May 1, is expected to act as a major spur for real estate change in and around the city, according to Shaun Brodie, head of east China research for property consultant DTZ.
In addition to a short-term direct impact on retail sales and tourism flowing from the event and the preparation that went into its staging, there would be a major and indirect impact over the long term, said Brodie.
Nearly 300 billion yuan (HK$340.7 billion) was invested from 2003 to 2009 to prepare for the expo, he said, and the major driver of future change to the property landscape in the city would be the expansion of the transport infrastructure. Shanghai has 420km of metro railway line, double the length at the end of 2008.
'As new lines become operational and allow for easier travel to outer areas, we expect to see the formation of new commercial hubs, the growth of suburban offices and the creation of satellite towns in the wider Shanghai area,' Brodie said.
Anthony Couse, the managing director of the Shanghai office of property consultant Jones Lang LaSalle, said locations outside the central business district were becoming realistically attractive alternatives for tenants.
