Trade in Real Estate and Urban Development in the Pre-War Shanghai Settlement

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  • 「戦前期、上海租界地区に於ける不動産取引と都市発展」
  • センゼンキ シャンハイ ソカイ チク ニ オケル フドウサン トリヒキ ト ト

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This article investigates urban development in the Shanghai Settlement until 1937 by focusing on real estate transactions. The first section shows that not only foreigners but also Chinese owned and traded real estate in the settlement. According to the 1845 Land Regulations, only foreigners were allowed to buy land in the ssettlement. However, after the late 19th century, many Chinese started to acquire land under the names of foreigners so that they could enjoy extraterritorial rights. The second section analyzes the continuous rise of land prices from 1890 to 1933. It argues that the concentration of industrial and commercial enterprises and the consequent increase of population in the small area of the settlement raised the rent of buildings and the price of land. Being profitable as well as secure, real estate in the settlement was widely and constantly traded among Chinese and foreigners. The close relationship between trade and financial transactions was important. The third section examines real estate mortgages. Financial institutions in Shanghai considered land title deeds to be highly secure collateral. Shanghai entrepreneurs could borrow money on the security of real estate for their short- and long-term capital needs, However, over-reliance on real estate made financial institutions structurally unstable. When the real estate market crashed in 1934, after the boom from 1929 to 1933, the financial market also slipped into a severe crisis. As a conclusion, the article analyzes the clynamism of urban development as follows: the concentration of industries and the inflow of people raised the price of land rents in the settlement. The consequent expansion of mortgages enabled entrepreneurs to finance their businesses, which led to further concentration of industries and the greater development of the area.

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