Shanghai is a global financial centre and the largest city in China. It includes the world’s busiest container port and a thriving manufacturing industry, but also provides many cultural highlights including early 20th century art deco architecture and the Shanghai Museum, which has one of the best collections of Chinese historical artefacts in the world.
Despite a recent slowdown in the growth of employment, improvements in productivity mean Shanghai’s economy is strong, with expected GDP growth of 6.8% in 2018.
Shanghai’s housing market has experienced many years of unprecedented demand and price growth averaging 12.7% year-on-year over the past decade (to 2018). As a result, properties in Shanghai are expensive with an average property price of $872,555 and an average prime property price of $2,432,364.
The government has introduced a range of cooling measures over the past few years in a bid to curb price growth in the new homes market, including higher down payments, tighter lending criteria, and price caps.
A property lottery system is in place in Shanghai and aims to guarantee "transparent and fair distribution" of units as part of the city's measures to address the supply and demand imbalance. In 2018, authorities in Shanghai also tightened rules applying to companies buying property.
New residential development has slowed recently as the availability of finance has been reduced in line with the Chinese government’s deleveraging policy. Housing completions in 2017 were less than half the 10-year average at 35,000.
Amid slowing economic growth in China the government has approved $125 billion of rail projects in fiscal stimulus. Among the projects approved, Shanghai will add six subway lines and three inter-city rail lines, which will provide a boost to connectivity and the wider local economy.