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Urban redevelopment in China has experienced great transformation. Government-backed redevelopment has been replaced by privately funded and property-led redevelopment. This article discerns the impetus of ongoing property-led redevelopment. A case study of the Xintiandi project in Shanghai reveals how property-led redevelopment actually works. Pro-growth coalitions between local government and developers are formed. Despite its role as capital provider, the private sector is still regulated by the government due to its negligible influence on local governance. The government controls the direction and pace of urban redevelopment through policy intervention, financial leverages, and governance of land leasing. Property-led redevelopment is driven by diverse motivations of different levels of the government, e.g. transforming urban land use functions, showing off the entrepreneurial capability of local …