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OPERATIONS AND MARKET REVIEWCHINA123SHANGHAITHE SPRINGDALELocated in Xinchang Town, PudongDistrict, The Springdale comprisesa total of 2,667 terrace homes andapartments. The Xinchang Town Station,when operational in 2012, will be a20-minute walk from the development.The project will benefit from theupcoming Disney theme park,which is only a 15-minute drive away.The Shanghai Disneyland is scheduledto open in 2015.Since its launch in mid-2010,The Springdale has achieved goodsales with 93% of the 794 launchedunits sold as at end-February 2012.RESIDENTIAL DEVELOPMENTIN NANXIANGLocated in an established residentialarea of Nanxiang Town, Jiading District,the development comprises a total of1,036 units of high-rise apartments. It isa 30-minute drive from People’s Squareand close to metro Line 11 stationas well as the expressway. Anothermetro Line 15 has been planned andwill be operational by 2015.Situated in a mature middle- to up-marketsatellite town, the development is closeto the British International School aswell as hypermarts including Carrefourand Walmart.The government is positioningNanxiang Town as the new suburbanCBD of Shanghai, with complementaryresidential zone comprising homes andpublic amenities to meet the needsof residents and corporations.Targeted at the middle- and uppermiddleincome groups, the first phaseof the project is expected to be launchedin the second half of 2012.PARK AVENUEThe Park Avenue precinct comprisesthree projects – One Park Avenue,8 Park Avenue and Park Avenue Central.Located in the prime Jingan District,Park Avenue is easily accessible viamajor expressways and the Jinganmetro Line 7, which is located less than100 metres away. The Nanjing WestRoad commercial and entertainmentbelt as well as the reputable First CentrePrimary School are also close by.The first project, One Park Avenue,which comprises 1,118 apartments,was fully sold in 2003 and handedover to buyers in 2005.8 PARK AVENUEThe development comprises 930luxurious apartments spread over10 high-rise towers. All 552 units inthe first six blocks have been sold andhanded over to buyers. Construction iscurrently underway for the remainingfour blocks consisting of 378 units.Two blocks with 260 units are scheduledfor launch in 2012.ECONOMIC REVIEWINTERNATIONAL FINANCIAL HUBShanghai’s GDP expanded by 8.2%year-on-year (y-o-y) to RMB 1.92 trillionin 2011. FDI increased by 13.3% y-o-yto a record US$12.6 billion, signallingforeign investors’ continued optimismin the city’s growth.With the aim of becoming aninternational financial hub by 2020,Shanghai aims to be the core centrefor the trading of yuan-denominatedfinancial products by 2015. To invigoratethe sector, financial services innovationis encouraged and banks may apply fortrial operation of new products.The government will also focus onservice-related industries and reduceits reliance on fixed asset investment,labour-intensive industries andreal estate. The opening of theDisney theme park in 2015 is alsoexpected to boost tourism as well asthe retail and services sectors.MARKET REVIEWMEASURES PROMOTESUSTAINABLE GROWTHShanghai is one of the first citiesin China to implement theproperty cooling measures tomitigate soaring home prices. It isalso one of the two cities that hasintroduced a property tax of between0.4% and 0.6% for buyers of secondproperties. Since the introduction ofthe property restrictions, prices havemoderated and sales volume hasfallen by 25–30%.The government has announcedplans to continue with the measures.To relieve housing shortage, thegovernment has committed to buildmore affordable apartments andpublic rental houses for the city’slow-income families.1. The Springdale meets rising demandfor quality homes in the Pudong Districtin Shanghai.2, 3. Building on the success of One Park Avenue,Keppel Land is developing its second project,8 Park Avenue, in the Jingan District indowntown Shanghai.68Keppel Land LimitedReport to Shareholders 2011Operations and Market ReviewChina69