A fairy tale impact
Updated: 2016-01-29 07:51
By Wu Yiyao in Shanghai(China Daily Europe)
More than 10 million people are expected to visit the highly anticipated Shanghai Disneyland in 2016, which will feature a theme park, two hotels and a range of lifestyle and retail options. [Photo provided to China Daily]
The opening of the Disney Resort in Pudong is set to give Shanghai's retail and property sectors a massive boost
The start of the new year has been a busy time for Lu Jianxin, a real estate agent with Shanghai Huayu Property. He has been getting about 50 phone calls a day as hundreds of people have been eager to find out if he can help them find retail properties near Shanghai Disney Resort, which is scheduled to open this summer.
Lu's response to most of them has largely been the same - that they should have acted earlier.
"Supplies of retail properties are really limited now and prices have more than doubled in the past 12 months. Obviously, investors believe that even a 10-square-meter space for a noodle stand will be really profitable if it is close enough to the Disney resort," says Lu.
After more than six years of construction and preparation, Shanghai Disney Resort is set to welcome its first visitors on June 16. This particular date was chosen because the number six - deemed as auspicious and symbolizing success -appears several times.
According to data from Centaline Property Agency, the average price of commercial properties within a 5-kilometer radius around Shanghai Disney Resort have grown more than 300 percent in the past five years, from some 20,000 yuan ($3,000; 2,700 euros) per square meter in 2011 to a peak of 72,000 yuan in January. This phenomenal growth rate was among the highest in Shanghai, similar to those in prime locations such as Nanjing Road, Huaihai Road and Lujiazui.
In comparison, the average price of residential properties in the same area doubled from 20,000 yuan per square meter to 40,000 yuan per square meter in the same period.
"Surging prices of commercial properties are a result of limited supplies and high demand. We estimate that the prices may grow further but at a more steady pace in the second half of 2016 after the opening of the resort," says Joe Zhou, head of research for JLL East China.