Construction & Loss of old Buildings

China, and especially Shanghai, are free-construction zones, with projects and cranes everywhere, though it's slowed in recent years due to the government putting on the brakes. In fact, it's gone so far so fast that old and traditional parts of Shanghai are being razed at an alarming rate - it's hard for foreigners who want to live more traditionally (and cheaply) to find places because whole neighborhoods are flattened regularly.

This causes some rather serious problems for existing residents, as they are suddenly homeless and can't afford to live in the new housing that replaced theirs. They often have to move far from the city center and commute an hour or more to work. The government has fortunately responded by providing more subsidies so they can live in the new buildings, so the pressure is easing somewhat, but gentrification seems in full swing.

In the end, though only foreigners seem able to afford to preserve the old houses, with the hottest new development being XinTianDi, built in old Shikumen housing, mixed in with new high-rises. This sort of preservation development will likely become more popular, at least saving portions of the old areas, if only for tourists and shops, but far better than losing it all.