China’s ‘Golden Era’ for Property Over

[cnleio]

Vietnam house market just sufferred a freeze state, but that needed for a reduction in price.

For Hanoi, apartment for low income people ( distance about 12-14 kilometers from city center ) cost about $400-450 / m2, 70m2 apartment cost $28,000-31,500 47m2 apartment cost $25,800 incl. VAT ; buyers could pay during 20-30 years after down payment 30% in advance. As you know average low income in Hanoi for household about $8,000/year, means 47m2 apartment price equal about 3 years of household income.

Apartment in the city cost about : $700-1700 per sqm, total for 70m2 : $49,000 ($700 / m2 ) ( low average household income about $8,000-10,000/year ) , for household go for $1200 - 1,700 / m2 : their income about $12,000-18,000 / year.

I have never experienced the living in apartment before, for my house in city center, it costs from $12,000-15,000 /m2 for land cost. I built up the 8 storey building with construction area about 600m2, we live in penthouse-like top 2 floors. 8 person in the family, under for leasing ... The cost for constructions about $180,000 - 200,000.
I don't have a car, because I have no driving license, and it also hard to keep a car around the city center, really uncomfortable ( parking, traffic jam, accident, police ... ). It's best to use taxi, bus or our own motorbike. For long distance, we rent the car with driver, mentioned that you will never dare to drive in Vietnam by yourself.

The house price of Hanoi city has reached the price rise in developed cities of East China, except BeiJing/ShangHai/GuangZhou/ShenZheng , as far as i know the average salary (Non-manager level) in Vietnam compnay office is about 1,500RMB, Right ?

In China city, usually each Three-members family has a house/apartment, only in town or village far away from city many family members living in a self-built floors building, but this self-built building can not trade in China house market and exchange bank loans, coz its lands coming from self-house land not from government's commericial lands. Anyway in China cities there'r apartments in residence community like my pics.

Home prices post first drop in 23 months

China Daily, June 1, 2014

Home prices in major Chinese cities posted their first monthly decline in nearly two years in May, an independent survey showed on Saturday, providing new evidence the once red-hot market is losing steam.

The average price of a new home in 100 major cities declined by 0.32 percent from April to 10,978 yuan ($1,750) per square meter, according to the China Index Academy, the first fall since June 2012.

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Potential homebuyers inspect models of housing developments in Beijing. [China Daily]

Prices dropped in 62 cities and were unchanged in one, according to the academy, the research unit of the real estate website operator Soufun.

The biggest monthly fall was in Shantou, Guangdong province, where prices slumped 3.64 percent compared with April.

"Rising market supply and sharp falls in transactions have put relatively heavy pressure on property developers' sales, leading some to beef up promotions and adjust their pricing strategy," the academy said in a statement.

Year on year, new home costs rose by 7.84 percent in May, 1.22 percentage points lower than April and the fifth consecutive month the increase has slowed, it said.

But, in 31 of the 100 cities, prices fell on an annual basis, with those in Wenzhou - a center of private enterprise and lending in the eastern province of Zhejiang - dropping most, down 8.30 percent.

The survey added to signs that China's property market is cooling, with analysts pointing to factors including stringent bank loan criteria, expectations of falling prices, and financial trouble among developers.

The government has sought for more than three years to contain rising property values, while also promising to add to the supply of affordable housing, as price increases stoke discontent among ordinary citizens unable to afford new homes.

Market control measures have included restrictions on purchases of second and third homes, higher minimum down payments and taxes in some cities on multiple and non-locally owned homes.

But, at the same time, local authorities make much of their income by selling land to developers, and have often rushed to loosen limits on purchases when property prices have fallen.

Among China's 10 biggest cities, Nanjing, in Jiangsu province, saw the biggest fall in May, with prices declining 1.36 percent month-on-month, the statement showed.

Only two places - Beijing and Tianjin - saw new home prices rise, with the average cost in the Chinese capital rising 0.69 percent from April to 33,472 yuan per sq m.

Good news, just let it down i'm waiting for a reasonalbe price time.

 

[Mr.S.Singh]

i got a question, I am a student of Investments and we study the mortgage market and house prices. House prices in China have exceeded and are out of reach of average Chinese citizen. On further analysis we found out people have put their life savings into investments of property i.e before the govt restricted number of houses that an individual can buy. Still there are large number of cities were occupancy rates are less than 30-40%. In most cases local government buys out the project and rescues the firms constructing. But how do you get the people to move into the housing projects. They don't have enough money to make the down payments and china has been hesitant to go the US way of mortgaging ... so how do you fill them up ?

 

[BoQ77]

The house price of Hanoi city has reached the price rise in developed cities of East China, except BeiJing/ShangHai/GuangZhou/ShenZheng , as far as i know the average salary (Non-manager level) in Vietnam compnay office is about 1,500RMB, Right ?

In China city, usually each Three-members family has a house/apartment, only in town or village far away from city many family members living in a self-built floors building, but this self-built building can not trade in China house market and exchange bank loans, coz its lands coming from self-house land not from government's commericial lands. Anyway in China cities there'r apartments in residence community like my pics.




Good news, just let it down i'm waiting for a reasonalbe price time.

If we use USD it takes less time to imagine, 1,500RMB after conversion used similar 240USD.
That could be salary for newbie, always very young, low educated, single ... they rent their commodation.
for a low income household 2 employees with some years of working, with kids ... have their own demand of apartment
the income : $8,000 -$10000 means average salary for low income household nearly $675 / month( 300 + 375 ).

In Vietnam, apartments can be traded but commercial value cannot compete the self-built based on ownership of land.
Self built also get the more preference from banks for loans.
Both has the license of ownership, but apartment lifetime 50-70 years as maximum.
For low income : apartment value $25000 ; but villas in the same area : $150,000 - 200,000
and building or villas in city center : $800,000- 2 million USD.
I am confusing with what is self built, we invested in the building and get the licence for construction, some for living, almost for office leasing, we are small investors for office building in our ownership land.

cnleio : that's strange for Chinese, but I have 3 small kids, our house always spare room for my parents, wife, 3 kids, and for a younger sister who keep the greencard, go back and forth from USA. I'm traditional so I am responsible to take care my parents in my house. That's why there's 7-8 person in my house, 5 for my small family + 2 of my parents + 1 of visit sister.
We got some land area in other parts of the city but we are familiar with living here, comfortable for banking, market, cinema, friends, good schools, near working place ... anyway we will not live apart

 

[cnleio]

If we use USD it takes less time to imagine, 1,500RMB after conversion used similar 240USD.
That could be salary for newbie, always very young, low educated, single ... they rent their commodation.
for a low income household 2 employees with some years of working, with kids ... have their own demand of apartment
the income : $8,000 -$10000 means average salary for low income household nearly $675 / month( 300 + 375 ).

In Vietnam, apartments can be traded but commercial value cannot compete the self-built based on ownership of land.
Self built also get the more preference from banks for loans.
Both has the license of ownership, but apartment lifetime 50-70 years as maximum.
For low income : apartment value $25000 ; but villas in the same area : $150,000 - 200,000
and building or villas in city center : $800,000- 2 million USD.
I am confusing with what is self built, we invested in the building and get the licence for construction, some for living, almost for office leasing, we are small investors for office building in our ownership land.

cnleio : that's strange for Chinese, but I have 3 small kids, our house always spare room for my parents, wife, 3 kids, and for a younger sister who keep the greencard, go back and forth from USA. I'm traditional so I am responsible to take care my parents in my house. That's why there's 7-8 person in my house, 5 for my small family + 2 of my parents + 1 of visit sister.
We got some land area in other parts of the city but we are familiar with living here, comfortable for banking, market, cinema, friends, good schools, near working place ... anyway we will not live apart

Different with Vietnam, in China city gernerally there'r two kinds of lands: 1. Self-use or Self-built land 2. Commercial land

By China laws, whole lands inside China belong to local government except famer's lands. Chinese famers have their own self-use lands to farm and build house, but the ppl living in city did not own any land they just buying house/apartment from property developer who local government sell lands. The land inside city sold by China local government to property developer for residential community building called Commercial land, China laws protect its value, allow to trade in house market and can exchange loans in government's banks.

Recent years China cities fast develop and expansion of urbanization, original city boundary changed from 15km to 30 or 50km and many new citizens coming into the increasingly enormous city. The villages or towns which ever been surrounding around the city now also become parts of the large city, original famers who living in these villages or towns also become new city citizens. Their lands still belong to famer's or village's not local government, after new city some famers or villages sell their farm lands to property developer for house building or they self-build their buildings in the lands, this land in city belong to famer or village not local government's called Self-use or Self-built land, it was ever the farm lands for Chinese famers, although now the land inside cities the owner still is local famer or village. They can build house in Self-use or Self-built land but China laws do not protect its value, do not allow to trade in house market and can not exchange loans in government's banks. Just for self-live and big risk for property invest.

There'r two kinds of land inside China cities, the reaon is China cities becoming far and far large and absorb lands from surrounding villages and towns.


Like my family living in China city, we did not have our own lands not like Chinese famers, we only can buy apartments from property developers and China laws protect our house value from commercial lands in the city.

In Vietnam, apartments can be traded but commercial value cannot compete the self-built based on ownership of land.
Self built also get the more preference from banks for loans.
Both has the license of ownership, but apartment lifetime 50-70 years as maximum.

This is the biggest difference between China and Vietnam, "ownership of land" is very few inside China cities, most lands belong to local government not person.


My grandpa bought apartment from property developer or government, My parents bought apartments from property developer, i bought apartment from property developer in China city. If i did not living in the city but in some town or village, well i think i can buy house from local famers or can build house in my own Self-use lands, the price will be cheaper than buying apartment in the city.