The extension of Shanghai's 12th and 13th metro lines went into operation a few weeks ago, providing faster transport from the city center to suburban areas such as Minhang and Jiading. And when the the new lines opened up, so did suburban property prices, with notable increases this month. Wang Ning is rushing to buy a two-bedroom apartment in preparation for her upcoming wedding. She'd been looking in the Jiading district, but realized that since the new metro line opened last month prices in the area have already shot up by 20%. That makes them still only half the cost in Shanghai's downtown, but the rapid prices rises and the new direct connection to her downtown workplace made her decision for her."For office workers like myself, buying an apartment here is comparatively cheaper and the transportation now is convenient since metro line 13 opened. Before that, this area seemed far away and not well developed," Wang said.Suburban Minhang has seen average residential property prices increase from 40,000 yuan per square meter to 43,000 yuan, in the past one month, according to property information website Anjuke.com. Analysts say the increase was driven by growing demand for property on the part of people like Ms Wang, once the new metro line opened."The market feedback shows how property prices have been boosted in areas along the metro line. There was a increase at the beginning of December and after the line opened, and the increase became more evident in the second half of December and especially the first half of this January," said Lu Wenxi, research manager, Centaline Property.Home-buying interest was also increased last year when the People's Bank of China cut the benchmark lending rates five times, lowering the interest rate on five-year loans from 6.15% to 4.9%. Market watchers say that if there are more cuts in 2016, more homebuyers will enter the market."Many people expect the People's Bank of China will continue to cut the interest rate. We believe the reduction of interest rates will have a bigger and bigger impact on the residential market. We feel if there are continued decreases in the interest rates that will continue to bring more people in to the housing market," said James Macodonald, Head of Research Dept., Savills China.Shanghai's metro plan shows 10 new projects being completed by 2020 and the overall length of the metro tracks reaching 800 kilometers. Experts at Centaline Property predict average property prices in suburbs like Minhang and Jiading will increase by an additional 8 percent this year.
Since Shanghai's 12th and 13th metro lines opened a few week ago providing transport form the city to the suburbs, the property prices in the area have increased by 20%. Suburban areas such as Minhang and Jiading, which are now connected to the city centre by the metro lines, have seen property prices increase from ¥40,000 per square meters to ¥43,000 in the past month., driven by demand. The People's Bank of China's decision to lower the interest rates on five-year loans from 6.15% to 4.9%, has supported demand. In Shanghai, there is no shortage of new apartment buildings being built.