SHANGHAI – Order No. 55, disseminated by China’s State Council in 1990 (“Order 55”), allows foreign investors to acquire land-use rights for business operations. However, China employs highly rigid rules and administrative control over the grant or transfer of land-use rights, and any change of the title or purpose of the land-use rights requires legal procedures to be carried out with government authorities. The Ministry of Land and Resources (MLR) and its local Land and Resource Bureaus (LRB) oversees land use registration and alterations. Nevertheless, all individuals or entities must utilize the land strictly in compliance with the general plan of land usage formulated by the state and local government. Continue reading
Sept. 4 – China’s real estate market has seen massive development since it’s opening to private investors in the late 1990s, and in order to rein in sky-rocketing property prices the Chinese government has rolled out various regulations and policies in recent years to keep the market in check. Included in this are regulations aimed at limiting the ability of foreign individuals and enterprises to purchase real estate in the country. Continue reading
By Collin Baffa
Jul. 5 – Prime “Grade A” office space in China typically consists of modern complexes offering state-of-the-art infrastructure and locations in the heart of each city’s central business district.
China’s first tier cities remain the most expensive markets for prime office rentals, with Beijing, Shanghai and Shenzhen topping the list, according to a survey conducted by DTZ, a global property services provider. However, despite their position atop the list of most expensive prime office rentals in China, these cities came under pressure during the first quarter of 2013. Continue reading
By Nicholas Hopper
Jul. 20 – China’s real estate market has seen massive development since it’s opening to private investors in the late 1990s. This rapid development, not unlike that seen in the United States before the 2008 crisis, is a risky one for several reasons, which we get into below.
For one, the disproportional value of real estate prices compared to the average citizen’s wages and standard of living has become cause for concern in today’s China. This can be seen when comparing office rental prices across various locations to each country’s GDP per capita, as illustrated by the graph below. Continue reading
By Vivian Ni
Oct. 27 – China’s property developers are actually offering discounts to real estate buyers, as they need higher sales to refill their parched cash flows. Although the price decline has only happened in a few select areas and experts are still hesitant to interpret it as an exact sign of an overall downturn in China’s property market, positive outlook towards the sector is falling as the central government’s efforts to cool housing prices continues. Continue reading
Posted in Business, Economy and Politics, Markets, Real Estate
Tagged Chengdu, China First Tier Cities, China House Price Decline, China Housing Bubble, China Interest Rate, China Property Developers, China Real Estate, China Reserve Requirement Ratio, China Second Home Purchase Restriction, China Tightening Monetary Policy, Foshan, Hangzhou, Nanjing, Shanghai
Which cities have value, and which are overbuilt?
Op-Ed Commentary: Chris Devonshire-Ellis
Sept. 7 – One of the issues concerning China has always been the investment into property. For the past two decades, local and regional governments have used property investment to increase their GDP figures in order to meet Central Government targets. However, this has led to unhealthy reliance on property as a provider of growth, and many instances of corruption and collusion between officials and developers. China now has a massive property bank, spread across the nation, and the on balance sheet recorded assets of local governments have dictated that these have pushed prices in China up to astronomic levels. Continue reading
Jul. 18 – Following the release of statistics on the first half of 2011 which show house prices are still growing in most surveyed cities, China’s State Council said on July 12 that it will continue to implement tightening policies on its property market and expand the home-purchase restrictions to second and third-tier cities.
Seeing surging property prices as one of the major contributors to China’s high inflation, the government has already been implementing a variety of restrictive measures on the country’s property market including home purchase limits, bank interest rate increases, and even a property tax in Shanghai and Chongqing. However, the most recently-released first-half statistics show investment in property development has still witnessed a year-on-year increase of 32.9 percent and commercial and residential property sales have also surged by 24 percent from a year earlier. As such, the Chinese government has decided to make further attempts to rein in the housing bubble. Continue reading
By Vivian Ni
Jun. 7 – Since last September, the Chinese government has launched a series of restrictive policies on the country’s fast growing property market, hoping to make housing more affordable to its 1.3 billion people and bring down high inflationary pressure. The policies, often commented as being “unprecedentedly stringent,” are relevant to the interests of multiple groups, including property developers, local governments, and prospective real estate purchasers. In the complicated interest game, it remains to be seen whether or not a ceiling to the surging property prices will finally emerge.
Presently, China’s control measures on its property market cover the following aspects: Continue reading