Shanghai Disneyland gives boost to nearby homeowners as property prices soar
Residents confident value will rise further as economic benefits of theme park filter into local economy
People living near Shanghai Disneyland, which opened on Thursday, have been reaping the financial rewards created by the boost the theme park has given to house prices.
The cost of homes in Chuansha, formerly a largely suburban area, skyrocketed more than 162 per cent from 2009 to 2015 as the project was built.
That compares with an average increase of 101 per cent in homes prices across the city during the same period.
Mickey Mouse has arrived: ‘China’s Disneyland’ opens in Shanghai
Residents say home prices near the park may rise further, despite concerns that measures taken by the local authority to control the housing market could limit further gains.
Chen Peijun, the owner of two apartments near the Disney resort, said his personal wealth has increased by more than 1 million yuan (HK$2.2 million) since his family was relocated to the area from eastern Yangpu district as part of urban redevelopment plans.
Watch: Disney opens theme park in Chinese city of Shanghai
The government offered Chen new apartments to move out of his old home and the 42-year-old engineer said he agreed on the spur of the moment.
“I wanted new dwellings the shortest distance from the Disney park,” he said. “I certainly made the right choice.”
Labour groups criticise Disney over worker conditions at China suppliers
The price of Chen’s flats are still below the average home price in Chuansha and he believes the area’s growth potential can be further tapped.
Shanghai Disneyland is expected to add nearly two per cent to the city’s economic output when fully operational.
At Chenqiao village, 3km from the Disney resort, villagers plan to turn their houses into inns.
Subway links, commercial properties, hotels and other infrastructure have been built to help with the operation of the theme park and create a 24.7 sq km tourism zone with the Disney resort occupying only a fraction of the land.
Chinese tourists leave their mark at attractions around Shanghai Disneyland
Shanghai’s government stepped in to curb the red-hot local property market in March introducing measures such as increasing mortgage down payments.
But residential property prices in areas near the Disney park are still rising.
Home prices across the city have inched down about 0.3 per cent month in June compared to May, but those near the park have gained 6 per cent.
Average home prices in Chuansha now stand at about 32,000 yuan a square metre, but are still about half the levels found in central areas of the city.
“Disney will transform the neighbouring areas to new hot land on a par with those busy streets,” said Chen. “I believe it.”
