Wenyi Zhang
Research expert covering Greater China
Residential real estate in Shanghai - statistics & facts
Shanghai is one of the most important metropolises in China. As the industrial and commercial center of the country, the municipality has a prosperous economy, and its residents enjoy a significantly higher standard of living than their fellow citizens from most other regions. The presence of numerous domestic and foreign enterprises in the city has made it highly attractive to internal migrants from other Chinese regions. Meanwhile, as the smallest provincial-level administrative region in mainland China, Shanghai is densely populated, with the housing market in the inner city in chronic shortage, making it one of the most expensive cities in China to live in.
In the first two decades of the 21st century, the average price of residential housing increased tenfold, reaching 37,443 yuan per square meter in 2022, while the average cost of homes within the inner ring road area remained above 119,000 yuan per square meter in 2022. Thanks to its diverse industries and robust economy, the city of Shanghai is in a sound financial position and has a low reliance on the sale of land usage rights. The municipal government had introduced numerous measures over the years, including restricting the purchase of properties by newcomers thereby limiting the number of properties that each individual could own, and increasing the down payment ratio. However, these measures had limited impacts on curbing the city's property prices.
Rapidly rising home prices
Since the housing reform of 1998, which ended the free distribution of housing by employers and established a housing finance system across China, the real estate sector experienced a long-lasting era of prosperity. As the economic hub of China, Shanghai's housing prices have grown exponentially.In the first two decades of the 21st century, the average price of residential housing increased tenfold, reaching 37,443 yuan per square meter in 2022, while the average cost of homes within the inner ring road area remained above 119,000 yuan per square meter in 2022. Thanks to its diverse industries and robust economy, the city of Shanghai is in a sound financial position and has a low reliance on the sale of land usage rights. The municipal government had introduced numerous measures over the years, including restricting the purchase of properties by newcomers thereby limiting the number of properties that each individual could own, and increasing the down payment ratio. However, these measures had limited impacts on curbing the city's property prices.
