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This post was edited by sfphoto at 2018-1-30 12:26|
seneca Post time: 2018-1-29 19:16
Your post did apprise me something I had been wondering about: the land lease for 40 years as comp ...
I think you’re confused.
During the Maoist era, everyone lived in “company housing” provided by the company, i.e., danwei, which also includes any public organization or institution such as Universities. After the Dengist reforms, China decided to phase out “company housing” by privatizing those real-estate assets and selling them at below-market rates to the employees of those companies.That’s how your friend got the apartment for so cheap. But at the same time, China decided to allow private enterprises to buy land from the local government and build “private housing” for sale to the public at market rates. The State no longer guaranteed any housing to everybody; you had to either buy or rent a house at market prices. The exception to this rule was State-owned “public housing” which is rented out to poor people or government officials at below market rates or given to persons as compensation for agricultural land which had been appropriated through eminent domain and designated by the State for redevelopment.
This was how the real-estate industry got started.
The “company housing” built during the Maoist era were truly Communist — spartan, utilitarian, functional — no frills concrete blocks. They still exist today as dormitories for migrant workers living in factory towns away from their rural villages. The State-funded “public housing” are somewhat better because they’re built by State-owned real-estate developers who also compete against Capitalist-funded real-estate developers in the “private housing” market. Market competition allowed both private and public housing markets to develop simultaneously, replacing the old Maoist “company housing” which were demolished after only 20-30 years. Incidentally, what you claimed in your earlier post about the lifespan of “private housing” being 30 years refers to these Maoist “company housing” not the 70-year leasehold “residential housing” nor the 40-year “commercial housing” because the State can’t repossess the land until the leasehold expires.
From your description of your second flat, it looks like you bought it at a low-price in a third-tier city where local fly-by-night developers sprouted almost overnight during the 90s. This would explain why those flats are so poor in quality which would have bankrupted such a developer in the 1st or 2nd tier cities, where the real-estate industry is dominated by highly-capitalized, professionally-managed companies such as Vanke, Poly, Greenland, Longfor, Wanda, etc. Now these giants are now moving to 3rd tier cities and thereby improving the quality of the housing market there.
The old adage applied to the housing markets in China: you get what you pay for.