Lujiazui 2.0 Under Development
For all its sparkle and futuristic buildings, Lujiazui has long struggled to live up to developers’ expectations of it becoming a business hub to rival those in New York and London. And while expansion projects are underway, interest is shifting to what some are already calling “the second Lujiazui”- Qiantan.
Over the next five years, nearly 51% of prime office real estate supply will stem from Qiantan. Supply from Lujiazui will be less than half that amount at 16%. But developers aren’t just looking to build more office space. The new business district will be full of mixed-use complexes with spaces for offices, retail, and residential living.
That Lujiazui was not built as a distinct district is a fact that critics have often cited as the chink in the area’s expansion plans. Developers are hoping that a mixed-level approach will prevent Qiantan from being plagued by many of the same problems.
“Lujiazui’s issue is the lack of amenities. Outside of working hours there is relatively little reason to go there,” said James Macdonald, senior director of Savills China Research. “But with residential communities and retail space, Qiantan will be a vibrant community that is live 24/7.”
According to Timothy Chen, a Research Director at Colliers International, Qiantan is the first zone where Lujiazui Group has taken control of planning from the outset, allowing them to maximize the area’s level of connectivity and integrated wealth of amenities.
Four foreign firms - Tishman Speyer, Swire Properties, Hongkong Land and Shun Tak Holdings – have joined the project in partnership with Lujiazui Group, a move that is considered unusual in a landscape dominated by local firms.
Tishman Group earned the honor of being the first to break ground with their glitzy and futuristic-looking Crystal Plaza. Tenants will include the US’s United Technologies Corporation, Germany’s Covestro, and other firms from the US, Europe, and the Middle East.
In February, Swire Properties invested ¥1.35 billion in an 116,000 square meter retail development project. The project will be the firm’s second retail project in Mainland China after the much-talked about Taikoo Hui Plaza in Puxi.
In the surrounding area, a whole roster of quality facilities will be available, including: Wellington College (already in existence), a new NYU campus, a Raffles Medical Hospital, and a Shangri-La Hotel. And residential projects by Tishman Speyer, Lujiazui Group, and other firms are set to start hitting the market this year. The Joy City Property project has already launched, receiving a staggering 3,100 bids for their 437 units.
For more information about Shanghai apartments for rent, please follow our website.