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2010 Expo's effects on Shanghai Real Estate

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2010 Expo's effects on Shanghai Real Estate

Postby shangpudi » Tue Jul 21, 2009 4:39 pm

World Expo is just around the corner and SH Real Estate prices have climbed dramatically the past three months. I believe there are a lot of foreignors banking on the pre-Expo real estate growth but nobody I've consulted with knows much about the aftereffects of the Expo. I've spent quite some time researching post-Expo property prices of previous Expos cities w/o much help. Any comments or predictions? My personal belief is a downfall of RE prices because the Chinese are so speculative and not very realistic after all the hype is gone. China is a gamble, might as well make it something worth wagering.
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Postby Andreas » Tue Jul 21, 2009 4:47 pm

I haven't seen any climbing of real estate prices yet. Are you talking about houses or apartments?
And also I could never understand why something as temporary as the expo, should have a serious effect on RE prices. On hotel room rates most probably.
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Postby shangpudi » Tue Jul 21, 2009 4:58 pm

More specifically apartments (in Pudong). We are experiencing situations where local RE Brokers (in two separate cases) are contacting our investment firm to list our luxury apartments. For example, we have had one of our apartments raise in value from 17,000 psm to 25,000 psm in the past 3-4 months. This is outrageous and cause for some concern. I have read the reports of govt subsidies going directly into the housing and stock market but wanted to tie all this into what the effects will be after the Expo. Call me speculative, but I can recall that after the Olympics things took a tumble in Beijing.
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