The Shanghai Municipal Government wants to improve housing conditions for more residents by transforming old areas with financial support from China Development Bank. The city signed a deal with the lender's Shanghai branch recently to fund the reconstruction of the old areas, which requires investment up to RMB400 billion in the next three years.
     The government plans to demolish 60 hectares of old buildings this year, which will involve some 25,000 households. The plots available will adopt new planning and efficient design to maximize land usage and to create a more pleasant living environment for the people.
     Rising property value also has its impact on the commercial sector. A land parcel designated for offices and retail next to the north Bund area in Shanghai's Hongkou District became the most expensive plot in terms of total consideration in mainland China was sold in a public auction in December 2012 for RMB5.68 billion or RMB23,330 per sq m.
     In 2012, the most costly land plot in Shanghai in terms of accommodation value was achieved on November 23, when a parcel in Huangpu District, also designated for offices and retail, fetched RMB36,176 per sq m.


Pudong CBD, Shanghai