The once heavily polluted Nanyou Industrial Zone in Nanshan District is gradually changing into an upscale commercial and residential area, driving up the property prices there.

Most of the factories have been replaced by shops and residential buildings, and about 10 housing estates have sprung up in the area. Apartments in Hualian Chengshi Huayuan, a new housing estate in the area, are being sold at 8,000 yuan (US$1,000) to 10,0000 yuan per square meter, prices close to those in the high-end residential areas in Nanshan, although there are several printing and dyeing factories near it. "The factories will soon be closed," said a salesperson with Chengshi Huayuan.

Built in the early 1980s, the 1.25-square-kilometer Nanyou Industrial Zone housed many printing, dyeing and plug board manufacturing factories, most of which were serious polluters. But the factories are moving out quickly.

"The old factories are moving out under rent pressure. Both the municipal and district governments hope to change the function of the area into a commercial or residential area," said Liu Chunshu with the Nanshan urban redevelopment office.

In an earlier interview with a Hong Kong-based newspaper Tai Kung Pao, Nanshan District head, Ye Minhui, described the area as a new "economic engine" and "symbol" for Nanshan. Parks, cultural facilities, shopping centers and office buildings will be built in the area, he said.

Developing the Nanyou Industrial Zone into a modern commercial area is part of Nanshan District's economic and social development program for the period from 2006 to 2010. The municipal urban planning bureau, however, plans to build the area into a residential area. Despite the disparity, the area is attracting both real estate and commercial estate developers.

Editor: Yan