SHANGHAI may follow Hong Kong's pattern of urban development, according to property specialists. Certainly, the development of the city's commercial districts appeared to mirror Hong Kong's, according to Mary Seddon at property consultants First Pacific Davies (FPD). Shanghai's Puxi district, on the west bank of the Huangpu River, could become the focus for the city's financial community, like Central. There are 10 areas within Puxi, the most famous of which is Huangpu. It accommodates the Bund, the traditional commercial hub of Shanghai. Meanwhile, on the opposite side of the river bank, in Pudong, Lujiazui, which was linked to the port and manufacturing zones of Waigaoqiao and Jinqiao, may become the headquarters for trading firms associated with a manufacturing sector similar to Tsim Sha Tsui, Ms Seddon said. The construction of the Customs Building in Lujiazui is likely to give the district an edge when attracting trading companies. This follows the emergence of Tsim Sha Tsui as an office centre for international trading companies, because it was largely triggered by the siting of the Customs and Excise Department there. In addition to the establishment of Puxi and Lujiazui as Shanghai's two primary office districts, a number of decentralised locations may also develop along the Hong Kong pattern. For example, Hongqiao and the area around the railway station may become the Quarry Bay and North Point of Shanghai, she said. The creation of office districts in Shanghai along a Hong Kong pattern was aided by the Chinese Government and the Shanghai local authorities, which were looking to develop the Bund and Lujiazui as the city's financial and business centres. It was possible Pudong would become the new central business district of Shanghai. The Government's decision to build the Shanghai Stock Exchange there could swing the balance in Pudong's favour. 'Much will depend on the level of infrastructure provided to service the new district as well as the standard of office buildings constructed in Lujiazui,' Ms Seddon said. The existing central business district, although not clearly defined because of the lack of Grade A buildings in the area, is located in Puxi and broadly covers the Bund and a section of the two main roads, Nanjing and Huaihai, which cross the city from east to west linking the Bund in the east with airport in the west. About 60 per cent of Shanghai's Grade A office buildings are in Hongqiao. Ms Seddon expected Puxi to consolidate its position as Shanghai's financial district when government departments vacated their offices in the Bund to make way for foreign enterprises which it hoped to attract. Less than half of the new office supply scheduled to come on stream in Shanghai by the end of this year and for the next two years will be located in Puxi. A total of 315,000 square metres of space from a total area of 751,000 square metres will be completed on the west bank of the Huangpu River during the two years, FPD research shows. However, almost a quarter of this will become available for mixed residential/office use. In Pudong, a larger amount of the space which will become available for occupancy is for residential/commercial use. Mixed residential/office buildings are less in demand. In Pudong, 135,000 sq m of residential/office space will come on stream, whereas, in Puxi, there will be 85,000 sq m. Much of the new supply was poorly located and likely to be poorly managed, Ms Seddon said. Limited land use controls were also likely to result in a negative impact on the market, particularly for mixed-use developments. For example, a number of existing residential buildings already accommodated office users. This posed management problems for both residents and office users and had a negative impact on the image of the building as a prestigious development, Ms Seddon said.