
After the first Opium War (1840-1842) Shanghai became a trading port, and foreigners were allowed to live and do business in the city. As more and more people entered into land concessions (leased territory), many foreign merchants turned their interests towards the real estate business.
The houses that were built for leasing at first, were wooden, and usually inEuropean style. The houses were grouped in rows. They were the forerunners to the lanes that developed in Shanghai. There were 8,740 of the houses by 1863.
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