Shenzhen’s exponential growth continues
Amid the soaring glass towers and modern buildings of Shenzhen’s Futian CBD is a rare pocket of idiosyncratic low-rise buildings. The ramshackle structures of Gangxia village are known as “handshake buildings” after their densely packed formation, meaning neighbours could literally shake hands through facing windows.
Crammed full of tiny apartments, independent shops, food stalls and more, the “urban village” is bustling with life and atmosphere, providing affordable accommodation for the massive influx of migrants and low-income workers, a melting pot of street food cuisine from Hunan and Sichuan and shops catering to every possible need and want.
This charismatic settlement is one of the last of its kind, a symptom of the rapid changes that have seen Shenzhen turn from a collection of fishing villages with some 30,000 inhabitants into a metropolis of more than ten million people in less than 40 years.
However, Gangxia’s days are numbered. Occupying prime space in the heart of Shenzhen, it won’t be long before the city absorbs this urban village as it has many others. Happily for the owners of these dilapidated constructions, the payoff will be enough to set them up for life, with property prices in Shenzhen soaring to unheard-of figures.
“We call them billionaire villages,” jokes Grace Huang, marketing communications
manager for Hilton Futian. “Property prices here used to be 10,000 yuan (`1,03,224) per square metre, but now they’re 1,00,000 yuan (`10,32,470). This is the only village left and according to government plans, it will be removed by 2019 or 2020, at the latest.”
While the rapid emergence of huge cities in China is not uncommon, Shenzhen is a special case for a number of well-documented reasons. In 1979, it was established as the first Special Economic Zone in China as part of Deng Xiaoping’s experimentation for reform and development. The experiment has been a resounding success. Opening up to foreign investment, combined with proximity to Hong Kong, turned Shenzhen into a manufacturing hub. Enormous foreign-run factories from Foxconn to Apple moved in, and Shenzhen became an electronics hub, churning out up to 90 per cent of the world’s gadgets and putting the former fishing village on the map.
The ongoing changes in Shenzhen are so rapid that visitors returning every few years are shocked at the rate of transformation. Luohu (Lo Wu) was the first established district and most important part of Shenzhen. Today, it’s famed for its shopping and nightlife, as well as serving as an important border crossing into Hong Kong. About five years ago, the commercial focus shifted to Futian, the current CBD that hosts the majority of financial institutions (including the towering Ping An Finance Centre) and more recently local government offices.
Virtually every international luxury hotel brand has claimed a piece of the pie: Shangri-La, Four Seasons, Ritz-Carlton, Marco Polo, Sheraton, Hilton, Langham – and there’s still more to come, with recent signings for a Marriott and Park Hyatt in Luohu and a Mandarin Oriental due to open in 2018. “There’s still a lot of demand,” explains the Hilton’s Huang. “We’re seeing more corporate travellers than ever. We used to have more leisure travellers, but now we’re 95 per cent business.”
Growth has already spread beyond the boundaries of the “new” Futian CBD, moving farther west into Nanshan. While many cities clamber for the prestige of being called “Asia’s Silicon Valley”, the title is most frequently used in relation to Shenzhen. The “factory floor of the world” has proven a fertile breeding ground for technological innovation. After all, there are few better places to find parts, supplies or manufacturers, with famous electronic malls such as the SEG Electronics Market in Futian, whose eight floors offer just about anything you could imagine, from circuit boards to LED lights. There’s also the Huaqiang North Commercial Street electronics market, the largest of its kind, with around 20 different shopping malls dedicated to parts.
This environment has given birth to a number of tech giants including Tencent, Huawei and ZTE. Other major tech players have also relocated and set up shop in the city, including Alibaba and Baidu, along with droves of start-up entrepreneurs eager to jump on the bandwagon. According to a recent Financial Times report, Shenzhen is home to more than 180 start-up incubators and has exploded in terms of online services and new IoT (Internet of Things) applications. One of the most successful start-ups is drone manufacturer DJI, one of China’s top ten “unicorns” – so called for receiving a billion-dollar valuation out of the starting blocks.
“Shanghai is a financial centre. Beijing is politics and finance. And Shenzhen is the technological hub of China,” agrees 30-year resident Raymond Su, resident manager at Kempinski Hotel Shenzhen. In addition to its tech legacy, another reason Su believes the city has flourished with respect to new technology is its relative youth. “Shenzhen is a young city, not even 40 years old. So
there’s no entrenched position of mindsets. Young people can set up a new system and figure out how to do it efficiently. The local government is also more efficient and there’s less red tape.”
The government is working hard to attract and retain young talent, with a wide range of financial incentives from tax breaks to free rent schemes for returning graduates. Lifestyle benefits within this tech frontier are also evident – from the prevalence of mobile payments and app-centric services, to the presence of luxury brands like Godiva and cool new neighbourhoods such as Shekou populated by growing numbers of expats and modern entrepreneurs.
Major technology-focussed events are also frequently held in the city, says Fiona Liao, director of communications at Shangri-La Hotel Shenzhen. From the Intel Development Forum, which welcomed more than 20,000 guests, to the “mustattend” Mars Summit. Apple, Tencent and Huawei all host major annual or biannual events as well.
In fact, the city has a thriving conference and events industry in its own right, reveals Liao. “One of the reasons Shenzhen is so popular is that it’s very convenient for transport. Shangri-La is the first choice for a conference hotel in Shenzhen – we have more than 8,000 sqm of conference space and are near the Shenzhen Convention and Exhibition Centre. Recently we hosted the XIX International Botanical Congress, which saw more than 6,000 guests from 100 countries.” The MICE business is thriving so much that a brand-new convention centre – touted to be the largest in the world – is currently being built north of Shenzhen International Airport in Bao’an District. The Shenzhen World Exhibition & Convention Centre mega facility is scheduled to be completed by the end of 2018, with 5,00,000 sqm of exhibition space comprising 19 exhibition halls plus meeting venues on either side.
But the new Shenzhen World development is just one part of a commercial and residential area planned for Bao’an, as Shenzhen develops even further into its western districts. According to Mao Daben, executive deputy general manager for China Merchants Real Estate’s exhibition operations centre: “The venue is in talks with IHG, Marriott, Hyatt and Accor [among others] to bring 4,000 hotel rooms in five-star and four-star properties to the area.”
The new development will be served by two metro stations, a new highway and a fourth terminal at the nearby airport, as part of continuing upgrades to transport infrastructure in order to keep up with demand. Commuters have been enjoying the added convenience provided by the ongoing expansion of Shenzhen’s metro line, which now boasts eight lines with three more under construction.
Another major boost to the city’s transport network will come next year, with the completion of the new Guangzhou-Shenzhen-Hong Kong High Speed Railway that will whisk commuters from Futian to Hong Kong’s West Kowloon Station in just 15 minutes.
With efficient transport, cuttingedge technology, world-leading conference venues and modern five-star accommodation, Shenzhen has come on in leaps and bounds in the past four decades – and there’s no sign of it slowing down any time soon.
New neighbourhoods such as Shekou are populated by growing numbers of expats and entrepreneurs
LEFT: Shenzhen is a world away from the collection of fishing villages it used to be
LEFT AND RIGHT: The new high-speed railway from Guangzhou to Hong Kong via Shenzhen; and Futian CBD