The average price of old villas reached 20,000 yuan (US$2,400) per square meters now, some 20 percent to 25 percent higher than a year earlier.

The highest price of a single property reached some 40,000 yuan to 50,000 yuan per square meter.

So far the most expensive old villa ever sold was traded at more than 20 million yuan. The highest price of a single villa now reached more than 32 million yuan.

The old villas with gardens or back yards became very hot properties in Shanghai since last year, attracting a large number of home investors especially those from Hong Kong, Taiwan and foreign countries.

The investment return can reached some 10 percent to 20 percent.

A large value potential of old villas was due to the small number of the properties, experts said.

Shanghai has now hundreds of old villas, including only some 60 that have legal property rights and that can be traded.

Many old villas were repaired or renovated before entering the market, which allowed their prices to go up further.

(Shanghai Daily July 31, 2002)