Chinese property bubble

Urban centres such as Shanghai and Beijing have witnessed a growth in prices to the point where many local people would now be unable to purchase the homes in which they live.
The purchasing of a property in China does result in the purchase of the buildings but does not result in ownership of the land. The purchaser also receives a land use right of a certain length (normally around 70 years) for the exclusive (but transferable) right to the usage of the land. Although the land use right is of limited duration it is not a lease and is subject to different laws than a land lease. In particular, exclusive use of the land does not require additional payment of fees, and can be used as security for a loan. The law governing what happens after the present land use right expires is still being formulated and is one of the hotly debated issues in the Chinese law community.
Furthermore, as all lands are state owned, the city or provincial government officials in China possess all power when it comes to land usage planning and allocation.

Chinese property bubble 2008-07-08T10:21:00-07:00 Rating: 4.5 Diposkan Oleh: campos