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Shanghai looks to five suburbs to reduce population density in China’s commercial hub

  • Five new towns will be developed in the Qingpu, Fengxian, Jiading, Nanhui and Songjiang districts
  • Shanghai mayor Gong Zheng had promised to build major industrial projects with high-quality public infrastructure and comprehensive transport hubs

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Large crowd of people on tThe Bund along the Huangpu River in Shanghai, China’s premier commercial hub and one of the country’s largest megapolises, with a population of 25 million residents, on May 1, 2020. Photo: AFP

Shanghai’s authorities have unveiled a grand plan to develop new townships out of five suburban districts to relieve the population density in the sprawling megapolis of almost 25 million people.

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Five new towns will be developed in the Qingpu, Fengxian, Jiading, Nanhui and Songjiang districts, where Shanghai mayor Gong Zheng had promised to build major industrial projects with high-quality public infrastructure and comprehensive transport hubs.

The grand plan is already attracting early investors to cherry-pick on the best land plots and most promising districts. Among the five, Nanhui offers the best potential for growth because it encompasses the Lingang free-trade zone (FTZ), where Tesla has chosen to locate its US$2 billion Gigafactory 3 electric car factory, said Yin Ran, an angel investor with a property portfolio in Shanghai.

“Nanhui will attract a bigger volume of eyeballs,” Yin said. Shanghai’s municipal government will “direct a huge population to Lingang in the coming years to build it into a real boomtown,” he said.

Tesla’s Gigafactory 3 in Shanghai on Friday, Dec. 25, 2020. Photo: Bloomberg
Tesla’s Gigafactory 3 in Shanghai on Friday, Dec. 25, 2020. Photo: Bloomberg

The development of the five new towns, dubbed as Shanghai’s satellite cities, was approved by the local legislature in late January. Avidly expecting detailed operating guides by the city government to make their own plans, developers, homebuyers, manufacturing businesses, retailers and other service providers have started studying the feasibility of investing in the new towns

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By 2035, each new town will have a population of more than 1 million people. A combined population of 5 million in the satellite cities will account for about one sixth of the city’s total at that time. They cover a total area of 820 sq km, 13 per cent of the city’s total 6,340 sq km.

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