Spotlight Savills China City Series - Shanghai May 2013

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Savills World Research Shanghai

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Savills World Research Shanghai

Spotlight Savills China City Spotlight Series - Shanghai May 2013 Savills China City

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City overview 3

City development planning 3

Office Market 4

Retail Market 6

Residential Sales Market 8

Residential Leasing Market 9

Hotel market 10

Appendix 11

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City overview The city plans to focus on the devel- FIGURE 1 Shanghai is located on the Huangpu opment of its finance, shipping, trade Shanghai's location River, a tributary of the Yangtze River and other emerging industries as the which is the main link between cen- pillars of the city’s economy going tral China and the sea. The city cov- forwards. ers a total area of 6,341 sq km, and is composed of 16 districts and one Following 16 consecutive years of county. At the end of 2011, Shanghai double-digit growth, Shanghai’s 2008 had a total population of roughly 23.5 GDP growth fell to less than 10.0% million people, including non-regis- as a result of the global financial tered long-stay residents. Shanghai crisis. By the end of 2011, Shanghai’s is one of China’s most densely popu- GDP per capita rose by 5.0% in real lated cities, with an average popula- terms, to RMB82,560 (US$12,800). tion density of 24,254 people per sq km in downtown districts. Even when Transportation including the inner suburbs, with an Intercity average population density of 6,956 Airport per sq km, this is comparable to To- Shanghai is the first city in China with kyo (around 7,000 people per sq km), two airports – Hongqiao and Pudong Source: Savills Research and far exceeds that of Paris (3,540 International Airport. In 2011, the FIGURE 2 people per sq km) and London (4,760 airports handled 74.56 million person people per sq km). times, 3.54 million tons of cargo and Shanghai’s administrative divisions 574,000 planes. Recently, Shanghai The most recent national census has begun offering 72-hour visa-free (2010) shows a clear trend of devel- stays for citizens of 45 countries opment moving towards the suburbs. transiting through China to a third Five downtown districts recorded country. a population decline of 300,000, while seven decentralised districts Seaport (Songjiang, Minhang, Jiading, Qin- The port of Shanghai is China's major gpu, Fengxian, Pudong, Baoshan) transportation hub. Shanghai over- increased their population by roughly took Singapore in 2010 to become 50% over a ten-year period. The the world's busiest container port. combination of high downtown The port handled cargo throughput residential prices, suburban devel- of over 29.05 million tons, as the city opment, the rapid expansion of the set an historic record, handling over city’s Metro system and rising car 30 million twenty-foot equivalent ownership has been the main driver units in 2011. of this trend. Expressways Shanghai has been at the forefront At the end of 2011, the total length of China’s economic reforms since of Shanghai’s expressways was 806 the early 1990s, and has seen tre- km, with eight national express high- mendous growth over the last two ways and more than ten provincial decades. Whereas the high growth highways. rates achieved in the early 1990s were accompanied by excessive Railways inflation, this has become increas- Shanghai is one of the key points for Source: Savills Research ingly manageable, resulting in a China’s ambitious high-speed railway consistently healthy rate of growth. system plan. The largest railway By the end of 2013, Shanghai plans At the end of 2000, Shanghai had station in Asia, Shanghai Hongq- to have 13 Metro lines in operation, become the first city on the mainland iao Railway station, was opened in covering 500 km, with daily passen- to achieve a per capita GDP of above 2010, reducing the trip length from ger times increasing to 8 million. US$4000 (RMB30,047). The econ- Shanghai to its neighbouring cities omy’s growth has largely resulted Hangzhou and Nanjing to 45 and 73 City development from major infrastructure projects, minutes respectively. planning increased industrial production and Any city that has a population of exports, as well as a continuing influx Intracity 23 million people is going to de- of overseas investment. Since 2010, Metro velop congestion and overcrowding development has focused on estab- Shanghai has the nation’s largest problems eventually. The Shanghai lishing regional headquarters, as well Metro system with a total length in- government, in order to alleviate the as moving away from less-profitable creasing from 63 km in 2002 to 454.1 pressure from the burgeoning popu- manufacturing towards a developed km in 2011, and a passenger volume lation, has come up with a master service industry. of 5.76 million person times. plan that envisages the development of four key subcentres along with

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ten “new towns” each with their own FIGURE 3 industry specialisation Shanghai urban structure of cities and towns, 1999–2020 Key subcentres  Xujiahui: Integrated services (high-end business, sport and cul- tural centre)

 Huamu: Administrative, commercial and living centre (international community)

 Wujiaochang: Science and education

 Zhenru: Integrated services and also serves the Yangtze River Delta

New towns:  Chengqiao: Agriculture, tourism

 Jiading: Automobile

 Qingpu: Tourism, manufacturing

 Songjiang: Export, manufacturing, education Source: Shanghai master plan, 1999–2020

 Jinshan: Chemistry FIGURE 4 Shanghai Metro line network, 2012  Nanqiao: Emerging industries (environmentally friendly)

 Harbour: Shipping

 Baoshan: Heavy industry

 Airport: Aviation

 Minhang Manufacturing

All the new towns are at varying stages of development. Some, such as Jiading and Minhang, have well established cores while others are still undergoing the initial stages of development or have been put on hold.

While the government originally envisaged this master plan as the city evolves so the does the planning on the future development. In recent years, a lot of the new development in the city centre has focused on the development of the Huangpu riverside. The Expo site is to be rede- veloped into a headquarter business park for state-owned enterprises Source: Savills Research and leading domestic companies, while further south there is also the the most exciting new area develop- distance bus terminal, and relatively development of Xuhui Binjiang and ments is the Hongqiao transportation close to the city centre. Minhang Binjiang. New develop- hub, which is conveniently located Office market ment areas are not limited to the next to the city’s domestic airport, Market description Huangpu River, however, as one of high-speed train terminal and long- Shanghai at the end of 2012 had

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roughly 5.5 million sq m of Grade A FIGURE 5 office stock. Rents in prime locations Office locations range from RMB9 to RMB10 per sq m per day on average, while non- prime locations range from RMB6 to RMB7 per sq m per day on a gross area basis. Typical contracts last three years, although it has become more common for large-space anchor tenants to be allowed to sign for five years, with a rent-free fit-out -pe riod of two to three months. Tenants are typically given the right to renew, with rents to be charged at what are deemed to be market rates. City-wide vacancy rates are below 10% despite substantial supply pressure, as much of the new supply is focused on decentralised locations and business parks. Shanghai’s tenant profile has shifted in recent years, increasingly favouring domestic tenants. End-user purchases and strata-title developments have also become more common. In 2012, Source: Savills Research rental growth was just above 10%, while gross reversionary yields were Wheelock, Kerry, Hang Lung, Hutchi- of Pudong New Area and arguably roughly 5.0% to 5.5% and capital son Whampoa, Wharf, CITIC and the city as a whole. The area enjoys values ranged from RMB50,000 to Swire, making this area a major office the city’s highest office building RMB80,000 per sq m. centre. Nanjing Road (W) is also density and accounts for approxi- home to some of Shanghai’s most mately a third of all Grade A office The next few years are expected to prestigious retail malls, department stock in Shanghai. Tax and business see substantial new supply entering stores and high-end hotels. In fact, incentives introduced in the late the market, forcing up vacancy rates, the abundance of such supporting 1990s attracted banks and financial especially in the Puxi market and facilities has led Nanjing Road (W) services firms to this submarket dur- particularly in non-prime locations. to re-establish itself as arguably the ing the early stages of development. As vacancy rates rise, rental growth most important business district in The market has now substantially is expected to slow and could start the Puxi area. Relatively new sup- matured and is a must-have address to record falls within the next three ply is predominantly focused on for not only financial firms but also years, should supply enter the market the Jing’an Temple area, which has companies in ancillary services, such as forecast. become an extension of the Nanjing as business and legal consultants, Road (W) commercial centre. Popular as well as government institutions. Shanghai is divided into two areas, with professional and business Recent years have seen domestic fi- ‘Puxi’ and ‘Pudong’, meaning ‘west’ services firms, Nanjing Road (W) nancial institutions acquiring and de- and ‘east’ of the Huangpu River currently boasts the highest rents in veloping a substantial portion of the respectively. Puxi, the “old city” area the city. new-builds, helping to bring vacancy of Shanghai, currently offers a greater rates down despite large volumes of number of office locations than Huaihai Road (M) – the heart of the supply from 2008 to 2011. Pudong, although the rapid develop- city ment of Pudong through the 1990s Since the 1990s, Huaihai Road (M) Non-prime locations has increased the available options. has emerged as a prominent central Hongqiao – Shanghai’s original busi- Shanghai’s CBDs usually refer to office node, with a variety of office ness centre Nanjing Road (W), Huaihai Road (M) buildings from both domestic and Hongqiao is one of Shanghai’s most and ‘Little’ Lujiazui. The Hongqiao international developers. The conve- important decentralised business and Xujiahui areas of Puxi, as well as niently located north–south elevated districts. The location, with its lower Zhuyuan in Pudong, are also popular highway also gives access to the overall occupancy costs, has ap- office locations. Inner Ring Road, leading to the rest pealed to corporations that do not of the city. Pudong can be reached require the prestige of a downtown Prime locations via the Inner Ring Road in 15 to 20 office address. Numerous manufac- Nanjing Road (W) – the premier ad- minutes. The area is popular with turing, logistics and trading compa- dress professional and business services nies have chosen Hongqiao for their The section of Nanjing Road (W) be- firms. Shanghai offices. Recently com- tween Maoming Road and Wulumuqi pleted developments in the area have Road features a number of Grade Lujiazui – China’s financial centre lifted the overall standard of space A projects by developers such as Lujiazui is the main business district available in the district.

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Hongqiao transportation hub is the FIGURE 6 most impressive project to debut Retail locations within the area in recent years. This world-class transportation hub inte- grates various modes of transportation, including a high-speed railway, the domestic airport, long-distance buses as well as numerous intra-city links. It not only provides easy access to all parts of the city, but also extends to the Yangtze River Delta and other key cities in China. Xujiahui – Shanghai’s first business hub Located in the southwest of the city, Xujiahui is one of Shanghai’s main shopping areas, but historically has offered only a limited volume of quality office space. The completion of the Grand Gateway project in 2005 created a critical mass, establishing the area from an office-use perspec- tive. Construction of Xujiahui Centre, another landmark project, is likely to further enhance the appeal of the Source: Savills Research area. The area is popular with retail and trading firms. day on a gross lettable area basis in and Xinzhuang, received remarkably prime areas. Tenants typically pay little development until the establish- Zhuyuan – Lujiazui’s back office either a base rent or turnover rental, ment of popular new projects, which Zhuyuan has become an important whichever is higher, with turnover created their own demand for other ‘back-office’ district of Pudong, rates for fashion retailers typically retail options in the area. located within a five- to ten-minute in the range of 13% to 17%. Retail drive of ‘little’ Lujiazui, and con- rents have grown at an average rate Prime locations nected by four Metro lines at Century of roughly 3% to 7% year-on-year Nanjing Road (W) – THE retail ad- Avenue Metro Station. The recent for the last few years. As downtown dress in Shanghai entry of several new office projects development sites become scarce, The origins of China’s luxury market in the district, together with retail and the city’s population moves to the starts here in the early 2000s when hotel facilities, has led to the area be- suburbs and infrastructure networks the completion of Plaza 66, and the coming a viable office location in its improve, newer developments have addition of CITIC Square and West- own right. Several banks and other focused upon suburban locations, gate Mall created what is commonly financial services firms have chosen dominated by large-scale community known as the “Golden Triangle”, and the area for their offices, given the malls ranging in size from 100,000 to is now more often than not the first close proximity to the main business 300,000 sq m. destination chosen by luxury retailers district, yet lower occupancy costs. when coming to China. Over the Zhuyuan is also being developed as Shanghai’s prime retail areas include last three years, the retail mix along a centre for financial securities and Nanjing Road (E/W), Huaihai Road, Nanjing Road (W) has become more futures, as well as Shanghai’s stock Xujiahui and Lujiazui (‘little’ Lujiazui diverse and retailers have spilled out exchange. and Zhuyuan). These areas differ in onto the streets when options within their target customers and scale. malls prove impossible to come by. Retail market While Nanjing Road (E) is geared Recent street stores include Uniqlo, towards tourists, Xujiahui and Sephora, H&M and Gap. Nanjing Shanghai’s retail sales account for Zhuyuan are focused on the needs of Road (W) is expected to receive a around 4% of the nation’s total, de- residents in southwest Shanghai and couple of interesting new develop- spite having less than 2% of China’s Pudong respectively. ments, namely Swire’s Dazhongli population. Many international retail- project, and Henry Group and Phoe- ers use Shanghai as a platform for The expanding urban areas and nix Advisors’ Yuyuan Road project. their China expansion plans. improvements in the city’s transportation network are also helping Huaihai Road (M) – the younger Market description to create new retail areas. Wujia- pretender By 2012, Shanghai featured roughly ochang, Zhongshan Park, Sichuan The leading retail stretch in the 4.5 million sq m of shopping mall Road (N) and Hongqiao are areas 1990s, Huaihai Road (M) has played stock, with vacancy rates in prime whose development was some- second fiddle to Nanjing Road (W) locations below 5%. Rents for first what postponed until the advent of over the last ten years, failing to gen- floor 150-sq m units leased to fash- improved transportation options. erate the same influence as Nanjing ion and accessories retailers range Other areas, such as Daning, Jinqiao Road. Huaihai Road (M) is predomi- from RMB25 to RMB80 per sq m per

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nantly driven by street stores, and hai and possibly China, Nanjing Road – Grand Gateway 66. The market until recently, department stores, with (E) is a Mecca for domestic tourists is compact with most of the retail most malls secondary to these retail and some international travellers. (department stores and malls) within formats. This changed three years Known throughout the country, ten minutes’ walk of each other. ago with the renovation and reinven- Nanjing Road (E) is synonymous with Xujiahui has retail stores from the tion of both Hong Kong Plaza and mass-market low-cost goods and low, mid and high end of the market Lippo Plaza on the eastern stretch snacks. Over the last four years, new and pulls in shoppers from a distance into luxury-flagship-store-dominated developments and new retailers have but particularly from the southwest malls. One of the more prominent raised the profile and positioning of of the city. developments to be completed in the street. 2013, Sun Hung Kai’s IAPM mall, Lujiazui – new money will help to redress the imbalance of Xujiahui – the southern hub Lujiazui is composed of two very retail offerings along Huaihai Road The busiest retail submarket in different submarkets – little Lujiazui (M) that has appeared over the last Shanghai, Xujiahui sits upon two and Zhuyuan. While the former is three years. Metro lines which will be joined by Shanghai’s third luxury destination a third (line 11) in 2013. Xujiahui is after the completion of Sun Hung Nanjing Road (E) – the tourist trap home to the best shopping mall Kai’s IFC, the latter services the The main pedestrian street in Shang- in Shanghai and arguably China needs of Pudong’s residents and is

TABLE 1 Retail dashboard

Nanjing Road (E) Nanjing Road (W) Huaihai Road (M) Xujiahui Lujiazui

Positioning Low, mid Mid, high Mid, high Low, mid, high Mid, high RMB per sq m 45–65 50–80 35–70 50–70 25–45 Shopping mall per day rents US$ per sq ft 242–350 270–430 168–377 270–377 135–242 per annum RMB per sq m 40–80 45–70 40–70 35–45 25–35 Street store per day rents US$ per sq ft 215–430 242–377 215–377 188–242 135–188 per annum Street shop, Street shop, Shopping mall, Department store, Shopping mall, Main component (Ph 2– north) department store, department store department store shopping mall department store shopping mall International and Main catchment High income White collar Southwest Shanghai Pudong domestic tourists • Highest shopping • Highest retail street • Raising retail • Raising retail mall rents • Concentrated in two rents positioning with new positioning with new • Developing fast- areas Commentary (Ph 1– east) • Low- to mid-end flagship stores flagship stores fashion cluster • High retail sales per fashion flagship • Retail offering • Retail offering • Development focus store (Nextage Mall) stores spread out spread out on Jing'an Temple Source: Savills Research

TABLE 2 Retailer – lease terms

Lease period Rent-free/fit-out Indicator High-end GLA (sq m) Sample tenants (years) period (months) Flagship anchor fashion 1,000–3,000 5–10 4–6 I.T, Zara, Uniqlo Fashion Specialty fashion 50–150 2–3 1–2 Calvin Klein, Nautica Coffee, dessert 80–200 2–3 1.5–3 Starbucks, DQ Ajisen Ramen, Chamate, Small size 150–500 5–8 1–2 F&B McDonalds Middle size 500–800 6–10 3–4 Pankoo, Dolar Shop Large size >1,000 8–10 3–4 Jade 388, Xiao Nan Guo Department store >10,000 15–20 6–8 Parkson

Anchor Fine supermarket 1,500–3,500 5–10 4–6 Ole, City Super 4,000–8,000 15–20 4–6 Poly, Xingmei, CGV

Source: Savills Research

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home to Shanghai’s best perform- FIGURE 7 ing department store, Nextage Mall. High-end residential map (urban) Little Lujiazui originally struggled to get off the ground, with its wide roads, no street stores and an incor- rectly positioned Super Brand Mall. The area has reinvented itself with a new tenant mix at Super Brand Mall, the completion of Shanghai IFC, and the addition of the sky walkway and new retail podiums.

Secondary locations Hongqiao – Asian cluster The original city centre in the early 1990s, Hongqiao’s market has seen little in terms of new supply until recently. The last year has seen the opening of a number of retail projects including Takashiyama and LVMH’s L’Avenue. With the largest non-Chi- nese Asian communities in Shanghai, the retail offerings clearly cater to this section of society with well-known Source: Savills Research Asian brands and eateries.

Zhongshan Park – Metro hub, Hon- Residential sales market residential community that it currently gqiao spillover Shanghai featured roughly 551 million is. Prices range from RMB70,000 to Centred around the 220,000-sq m sq m of residential stock (according RMB150,000 per sq m. Cloud Nine mall, Zhongshan Park is to the Statistics Bureau) by the end Former French Concession another retail hub linked to a Metro of 2011, with over 40% constructed The former French Concession is station. The area is less mature than prior to 1998. Average living space home to the largest concentration of Xujiahui and positioned more firmly per capita stands at approximately historic lane houses and old garden at the mid end of the market. The 35 sq m. Residential prices increased houses giving it a unique character- only new project that is scheduled to quickly from 2003, with a compound istic favoured by high-end buyers. come online in 2015 is Raffles City annual growth rate of 13.2% from Quiet, tree-lined street are dotted Changning. 2003 to 2011, and dramatic growth with numerous restaurants, cafés spurts occurring in 2007 and 2009 and nightlife options. Preservation of Sichuan Road (N) – mass-market, when prices increased by 30% to parts of the former French Conces- up-and-comer 40% within a year. sion has meant that new develop- Sichuan Road (N) is an older retail First-hand commodity residential ment projects have been limited. district which has received a breath prices average over RMB20,000 per The area features some of the city’s of fresh air, as a number of new proj- sq m, with luxury residential unit highest residential transaction ects have recently opened up and a prices ranging from RMB70,000 to values, with prices going as high as number of older developments have RMB150,000 per sq m, although RMB200,000 per sq m. been renovated. Shoppers are locals units have been transacted for up to from the north of Shanghai, with RMB210,000 per sq m. Rental yields South and north Jing’an retailer positioning gradually improv- are very low at around 2% annually. Jing’an district is home to a number ing as spillover from Nanjing Road (E) of new residential developments that creeps further north. Established areas have leveraged their proximity to Xintiandi one of the city’s main business and Wujiaochang – the northern hub Xintiandi is one of the most expen- retail stretches to achieve some of Wujiaochang could be referred to as sive residential areas in the city, the city’s highest prices. Prices range the Xujiahui of the north; it is similarly boasting a high concentration of from RMB60,000 to RMB100,000 per a city sub-district, a focal point for luxury properties. The market was sq m.Lujiazui Riverside the Yangpu district government, has established in the early 2000s as good infrastructure, is a compact Shui On Land, after having secured New high-rise developments line market clustered near a roundabout a large swathe of land, developed the eastern bank of the Huangpu and is a focus for the northeast of the Xintiandi retail development, River stretching south from the city’s the city. A couple of new projects are along with Grade A office space and financial centre, Lujiazui. Breathtak- scheduled over the next few years, high-end residences. This helped ing views of the historic Bund across namely the eagerly anticipated Hop- to elevate what was previously a the river and China’s new economic son Square and Moon Star projects. dilapidated area to the premium might to the north, along with some

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of the most opulent interiors, have FIGURE 8 attracted a number of high net worth Puxi key residential leasing locations buyers wanting to flaunt their wealth, as well as bankers wanting to live in close proximity to the financial hub. Prices range from RMB60,000 to RMB200,000 per sq m.

Gubei Located to the east of Hongqiao, Gubei is a mini-Metropolis dominated by high-rise towers and interspersed with green areas. The area, the business centre of Shanghai in the early 1990s, caters primarily to Asian expatriates, particularly Japanese and Koreans. The area also boasts a number of international schools while still being close enough to the city centre to not feel removed from the hustle and bustle of city life. Prices range from RMB40,000 to RMB80,000 per sq m. Source: Savills Research Emerging locations As established residential areas FIGURE 9 continue to mature and developable Pudong key residential leasing locations sites remain scarce, developers have embarked on forging new high-end locations. These new high-end areas tend to be either to the south or north of established high-end residential markets, or along the Huangpu River, as waterfront views are now in greater demand. Prices vary greatly but are typically between RMB50,000 and RMB100,000 per sq m. Residential leasing market Market description As with many emerging markets, high-end residential leasing demand in Shanghai is dominated by expatriates seconded to the city by their multinational corporation employers. The market has a history of about 20 years with the first truly high-end residential establishment for lease being the Shanghai Centre. Source: Savills Research Since then, the market has grown to roughly 7,000 serviced-apartment came increased demand for qualified rather than families. There is also units, 3,000 high-end strata-title expatriate employees (both mid and an increasing – although still small – units and 4,000 high-end villa units. senior management). number of Chinese clients, as locals From 2005 to 2010, both serviced- become more mobile and demand apartment rents and occupancy rates As the market has matured, accom- better quality accommodation. suffered from increasing competition modation options have become more from the strata-title market and a plentiful with an increasing variety of High-end serviced-apartment proj- strengthening renminbi (most hous- project locations, sizes, service provi- ects charge, on average, between ing budgets were in US dollars). The sion, interior decor and lease terms. RMB200 and RMB300 per sq m per market started to show signs of a While demand still primarily comes month, while strata apartments and recovery in 2010 as slowing western from seconded expatriates, more are villas cost an average of RMB100 economies encouraged companies Asian (Singapore and Hong Kong) and RMB200 per sq m per month. to expand their business in growth than western, and singles/couples All subsectors have seen occupancy markets such as China, and with this

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rates rise to, on average, 85% to FIGURE 10 95% in recent quarters. Five-star hotel locations Puxi Downtown Downtown Puxi is made up of three components: Xintiandi, a fashionable, super-luxury high-rise residential community centred on the same- named F&B, bar and entertainment strip; the former French Concession, a spattering of newer developments among predominantly older garden homes and lane houses; and south Jing’an, again newer developments in close proximity to the famous Nan- jing Road business and retail strip.

Downtown Puxi is greatly favoured by singles and couples, and particularly westerners, with most creature comforts and entertainment in easy reach of a RMB20 taxi ride.

Suburban Source: Savills Research Families tend to prefer living in the suburbs, which are more peaceful, have more greenery and are in closer proximity to international schools. relatively few developments, such as per room per day while boutique Hongqiao, the traditional business the Kerry Parkside, Shama Century hotel nightly rates could range from centre for Shanghai in the early Park and Savills Residence Century RMB1,500 to RMB10,000 per room 1990s, is a favourite with Japanese, Park, but is gaining in popularity as per day (Hotel Massenet). The typi- Korean and other Asian families with it begins to position itself as a Hon- cal occupancy rates for traditional well stocked supermarkets and a gqiao of Pudong – far enough from five-star hotels are 60% to 75%, wide variety of eateries. It also not the city to raise a family but not too apart from highly sought-after hotels, too far removed from the hustle and far away to feel cut-off from city life. such as the Hilton and Shangri-La. bustle of the city, located roughly Century Park targets the mid end of Boutique hotels usually report even 15 to 25 minutes by car from the the market while Lujiazui is solidly at lower occupancy rates. The market downtown areas. There are a number the high end. saw the rapid expansion of stock in of newer developments which offer the run-up to the Shanghai Expo in competitive rents and spacious living Suburban 2010, which increased competition spaces. The area is dominated by Comprising three main areas, al- and forced operators to lower rents. villa compounds but also has its fair though really spreading out as far as Many hotels have not been able to share of apartment blocks. Pudong airport, Pudong’s suburban raise rates to the levels seen prior to residential leasing market is domi- 2010 as a result. Pudong nated by villa developments. Biyun is Traditionally not that popular with the most popular submarket, offering Shanghai’s high-end hotels are, as expats, especially those working a wide variety of properties at differ- one might expect, typically located in in Puxi, the Pudong market has ent price points and access to the or near CBD areas, as their primary improved markedly in the last three new Pudong campuses of the major client base continues to be busi- to five years, with new retail facilities international schools. Both Biyun and ness travellers. The Bund area, being and better river crossing links, as Jinqiao have convenient access to one of the top tourism attractions well as more companies moving their the Jinqiao Export Processing Zone in Shanghai, is an exception from offices to Pudong. and Zhangjiang hi-tech park. other hotel areas. These elegant early-1900s era buildings are some of Downtown Hotel market Shanghai’s most famous landmarks which, are today occupied by luxury Downtown areas in Pudong are Most high-class hotels are oper- brands, private equity funds, govern- primarily made up of Lujiazui and ated either by leading international ment institutions, law firms, restau- Century Park. Lujiazui has a number management companies (Inter- rants and of course, luxury hotels.  of large-scale high-rise developments Continental, Marriott and Starwood mainly to the south of the same- are three biggest international hotel named business district, next to the operators in Shanghai) or boutique Huangpu River. Units are typically hotels remodelled from historic occupied by singles and couples properties. Five-star hotel daily rates working in Lujiazui. Century Park has start from an average of RMB900

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Appendix

TABLE 3 Data table, 2011^

Units Value Nominal growth rate Real growth rate City ranking Registered population Million persons 14.19 1.95% -- -- Permanent population Million persons 23.47 0.5% -- 2/134 Population density Persons per sq km 3,702 1.9% -- -- (permanent population) Urbanisation rate % 89.3 0.4 ppt -- -- GDP RMB billion 1,919.57 11.8% 8.2% 1/272 GDP per capita* (urban) RMB 82,560 8.5% 5.0% 11/191 Retail sales RMB billion 68.14 12.3% -- 2/258 Retail sales per capita** (urban) RMB 29,000 10.1% -- -- Disposable income per RMB 36,230 13.8% -- capita**** (urban) Utilised foreign direct US$ million 126.01 13.3% -- 2/116 investment

Area (city total) sq km 6,340.5 -- 228/287

Area (urban) sq km 998.8 -- --

Annual airport passengers Million persons 376.6 3.4% -- --

Metro lines in operation --- 13 -- --

Source: Nanjing Statistics Bureau, Savills Research ^ http://www.stats.gov.cn/tjsj/qtsj/hjtjzl/hjtjsj2010/t20111229_402788833.htm * Based on permanent population figures. ** Based on permanent population figures. *** Based on permanent population figures.

TABLE 4 District breakdown, 2011

Population density District Area (sq km) Population Increase vs 2006 (%) Floating population (per sq km) Shanghai proper 289 7,020,100 8.1 24,254 1,730,300 Huangpu district 20 680,400 -13.3 33,255 184,100 Xuhui district 55 1,095,000 13.8 19,996 285,200 Changning district 38 690,000 5.5 18,016 171,500 Jing'an district 8 243,600 -5.4 31,969 52,800 Putuo district 55 1,297,200 15.7 23,659 362,400 Zhabei district 29 838,000 11.6 28,640 202,300 Hongkou district 23 851,600 8.7 36,269 191,300 Yangpu district 61 1,324,300 11.9 21,806 280,700 Inner suburbs 2,316 11,100,200 40.2 4,792 5,026,100 Pudong New Area 1,210 5,175,000 36.8 4,275 2,146,400 Minhang district 371 2,484,000 36.1 6,700 1,240,800 Baoshan district 271 1,935,000 45.8 7,140 779,300 Jiading district 464 1,506,200 53.7 3,245 859,600 Outer suburbs 3,735 5,354,300 43.2 1,434 2,597,300 Jinshan district 586 758,700 19.6 1,295 229,300 Songjiang district 606 1,650,000 74.8 2,724 1,002,800 Qingpu district 670 1,117,600 50.2 1,668 642,200 Fengxian district 687 1,103,000 48.0 1,605 545,800 Chongming County 1,185 725,000 8.1 612 177,200 Shanghai 6,341 23,474,600 29.3 3,702 9,353,700

Source: Shanghai Statistics Bureau, Savills China Research

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TABLE 5 Existing Metro lines, 2012^

Total length Lines Terminals Completion Stations (km)

1 Fujin Road Xinzhuang 1995 36.4 28

2 East Xujing Pudong International Airport 1999 63.8 30

3 North Jiangyang Road Shanghai South Railway Station 2000 40.3 29

Loop line through Yishan Road and 4 2005 33.7 26 171,500 Yangshupu Road

5 Xinzhuang Minhang Development Zone 2003 17.2 11

6 Gangcheng Road Oriental Sports Center 2007 32.3 28

7 Meilan Lake Huamu Road 2009 44.2 32

8 Shiguang Road Aerospace Museum 2007 37.4 30

9 South Songjiang Station Middle Yanggao Road 2007 45.5 26

Hongqiao Railway Station/ 10 Xinjiangwancheng 2010 35.4 31 Hangzhong Road

11 North Jiading/Anting Jiangsu Road 2009 45.8 20

13 Jinyun Road Jinshajiang Road 2012 8.3 5

22* Shanghainan Jinshanwei 2012 56.4 8

Maglev** Longyang Road Pudong International Airport 2002 33 2

Source: Shanghai Statistics Bureau, Savills China Research ^ http://www.shjjw. gov.cn/gb/jsjt2009/node13/node1941/userobject7ai4955.html * Line 22 is a commuter rail line that is separately operated by Shanghai Jinshan Railway Co. ** Maglev is often included in Shanghai Metro maps but is not considered part of the system.

TABLE 6 Future Metro lines

Expected Total length Lines Phase Terminals Stations completion (km)

5 (Ph 2 – south) Dongchuan Road Nanqiao New Town <2020 20.7 8

8 (Ph 3) Aerospace Museum Huizhen Road 2015 6.6 6

9 (Ph 3 – Pudong) Middle Yanggao Road Caolu <2020 14.5 9

10 (Ph 2) New Jiangwan town Waigaoqiao 2015 10 6

11 (Ph 3 – Disney) Luoshan Road Disney Land 2015 9.4 3

11 (Ph 2– north) Jiangsu Road Luoshan Road 2013 21.5 13

12 Qixin Road Jinhai Road 2014 39.5 32

13 (Ph 1– east) Jinshajiang Road Nanjing West Road 2014 6 7

13 (Ph 2 – west) Nanjing West Road Expo Avenue 2014 6 5

13 (Ph 2 – east) Expo Avenue Zhangjiang <2020 45.8 20

14 Jiangqiao Jinqiao <2020 36 29

15 Chentai Road Zizhu Hi-tech development zone <2020 40 28

16 Ph 1 Luoshan Road Lingang New Town 2013 53 11

16 Ph 2 Longyang Road Luoshan Road 2014 6.5 1

17 Hongqiao transportation hub Oriental Land <2020 35.2 11

18 Changbei Road Hangtou <2020 44 30

Source: Shanghai 12th Five-Year Transportation Plan

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