Archive for the ‘house price’ tag
Is House Price Slipping in China?
I have been looking for an apartment in Shanghai for several months, but without any progress, I am still waiting for a better timing since it looks like that the house price is slipping in China. The question is when it is the best chance?
This July, I had gone to see two residential quarters in Jiangqiao town of Jiading District. The average price was about 20k RMB per square meter. Recently I have received several text advertisements, all said that the property developers have special discount. Xiangfuwan, for example, has 10% off discount and provides extra 25k funds for buyers.
It says that Vanke, the top resident property developer in China, is selling all its houses with as much as 30% discount. The sales office of its property called Qinglinjing was smashed by its customers who bought their apartments before the discount with higher prices. Similar smashing occurs in several other sales offices, not only in Shanghai, but also other cities, like Beijing.
Now the government still claims that it will not loosen the economic policy, and Premier Wen Jiabao said that the government is determined to control the house price. But to be true, the government lost its credit in the past years.
If it is not the best timing to buy an apartment in Shanghai now, then when?
Get Rich Through Relocation
House price in China, especially in those top-tier cities like Beijing and Shanghai, is very expensive. In a recent investigation, more than 60 percent of people think that the price is not affordable. In Shanghai, more than ten buildings are sold at the price higher than 100,000 RMB per square meter(about $15,000).
As the house price is so expensive, during the urban construction, many citizen who own a old house get rich through relocation. These kind of people get decent compensation, either in cash or in kind, after being relocated from their old and possibly dilapidated houses.
