Singapore's Kheng Leong makes high-stakes return to Shanghai's property mark...

by Wang Tingting

Since early 2025, China's land auction market has been heating up, with domestic and international developers making aggressive bids. While state-owned enterprises have traditionally dominated, private and foreign real estate firms are making a comeback, restoring market confidence and stabilizing home prices.

On February 20, Shanghai held its first land auction of the year, featuring four prime plots that attracted bids from over ten developers. The most sought-after plot in Hongkou District drew fierce competition among major players, including China Overseas, Poly Developments, and consortiums including China Merchants Shekou & Greentown, China Resources Land & Yuexiu Property, and Jinmao & Kheng Leong.

After an intense bidding war lasting over two hours and 184 rounds, Jinmao & Kheng Leong secured the land for RMB 8.964 billion (USD 1.24 billion), setting a record under Shanghai’s ‘dual high, dual competition’ policy.

Kheng Leong's return after more than a decade

Kheng Leong Company, a Singapore-based real estate developer, last acquired land in Shanghai over a decade ago. In 2010, it entered the market with a RMB 2 billion (USD 276 million) purchase of a residential site in Putuo District, later developed into the high-end Qinhe Yuan, where units sold for approximately RMB 110,000 (USD 15,200) per square meter by 2021.

Encouraged by this success, Kheng Leong acquired another site in 2012 in Yangpu District for over RMB 600 million (USD 83 million), developing it into Qinfeng Yayuan. However, its large square footage and high price point limited its appeal, resulting in weaker sales compared toQinhe Yuan, with only 20 out of 101 units sold as of February 2025.

Following its Yangpu project's underwhelming performance, Kheng Leong exited Shanghai's land market for over a decade—until now. The group's renewed interest suggests a more strategic approach, targeting only prime locations. Its latest investment in Hongkou’s core area underscores a shift in strategy.

Learning from Yangpu, doubling down in Hongkou

The acquired plot is located in the well-developed Ruihong Xincheng area within the Inner Ring. Market analysts believe the project will be positioned as a luxury residential development, with an expected price of RMB 160,000 (USD 22,100) per square meter.

Industry experts highlight that the scarcity of new housing in the area made this plot highly desirable. Shanghai-based analysts note that its prime location, coupled with strong demand for high-end properties, ensures robust sales potential, a key factor in Kheng Leong‘s renewed confidence in the city.

While Kheng Leong has a strong track record in Singapore and Hong Kong’s luxury property markets, its Yangpu project faced challenges due to prolonged development timelines, niche architectural design, and high price points. In contrast, its Hongkou investment is a calculated move, benefiting from a partnership with Jinmao, a well-established Chinese developer known for its premium Jinmao Mansionseries.

By collaborating with Jinmao, Kheng Leong reduces financial risk and gains access to local market expertise. This strategy aligns with a broader trend in Shanghai’s luxury market, where high-end properties continue to perform well despite broader market fluctuations.

A Singaporean powerhouse reinvests in Shanghai

Founded in 1949, Kheng Leong Company is wholly owned by the influential Singaporean financial dynasty, the Wee family. The group’s business spans finance, investment, real estate, and pharmaceuticals, with notable stakes in United Overseas Bank, Wah Lian Group, and Tiger Balm. The late patriarch, Wee Cho Yaw, was a key figure in Singapore’s banking industry, and his heirs continue to expand the family’s business empire.

Kheng Leong’s Shanghai subsidiary, Kheng Leong (Shanghai) Investment Management Co., is now led by Wee Cho Yaw’s second son, Wee Ee Chao. With a strategic pivot to high-end developments and a well-regarded Chinese partner, Kheng Leong aims to turn its Hongkou investment into a major success. Unlike the decade-long delay seen in Yangpu, this project is expected to move forward swiftly.

As Shanghai’s core districts maintain their appeal among global investors, Kheng Leong’s high-stakes bet may signal renewed confidence in the city’s luxury real estate sector. Whether this marks a triumphant return for the Singaporean developer remains to be seen, but this time, it appears better positioned for success.