This paper seeks to explore the spatial dynamics of housing development in Shanghai, China, in the context of rapid urban restructuring. Questions addressed include whether theories on the internal spatial structure of and processes about cities, which were derived from studies largely on American experiences, can explain the situation in Shanghai, and how indigenous factors, such as history, geography and institutional setup, contribute to the spatial dynamics. Data were collected from local newspapers and published as well as unpublished reports from various agencies. Field reconnaissance surveys were conducted in order to verify and complete the database. Descriptive statistics and some parametric and non-parametric analysis tools were used in data analysis. GIS was used interactively in data organization, analysis and results visualization. A complex polycentric organization in the period 1990-2002 was found to distinguish Shanghai's spatial structure not only from its previous monocentric configuration, but also from any polycentric pattern ever found in other countries. National development strategy has been believed to have key impact on the formation of such a substantive restructuring process. Moreover, location factors, as an important representation of historical, political and socioeconomic shaping forces, have exciting explanation power for the variation of urban development. Findings of this study contribute to the literature by adding on to the discussions on urban spatial pattern of a major city in transitional China. This study also helps policy makers and private businesses in development/planning decision-making.