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Should homes be for living or investment? [Copy link] 中文

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Post time 2018-11-19 10:05:53 |Display all floors

(South China Morning Post) Soon-to-be-published research will show roughly 22 per cent of China’s urban housing stock is unoccupied, according to Professor Gan Li, who runs the main nationwide study. That adds up to more than 50 million empty homes, he said.

“There’s no other single country with such a high vacancy rate,” said Gan, of Chengdu’s Southwestern University of Finance and Economics. “Should any crack emerge in the property market, the homes to be offloaded will hit China like a flood.”


Housing speculation has bedevilled China’s leaders for years, as some cities and provinces tightened buying restrictions only to see money flooding into other areas. Rampant price gains also mean millions of people are shut out from the market, exacerbating inequality. Xi famously said in October last year that “houses are built to be inhabited, not for speculation.”


Holiday homes and the empty dwellings of migrants seeking work elsewhere account for some of the deserted properties, but purchases for investment are a key factor keeping the vacancy rate high, according to Gan.

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Post time 2018-11-19 10:15:59 |Display all floors
Both, of course.

Are your eyes for scrutinizing masterpieces or ogling at B-movies.

Again, both -- of course.

It all depends on what you want to prioritize.

If it is for use as your own living quarters, one comfortable house with three bedrooms would be enough.

On the other hand, if it is intended for use as a showoff, the more extravagant it is the better.

And of course, if it is for investment purposes only, looks don't matter and it's always the same chant -- location, location, location.

So have no fear if you are an investor, just go and buy the ten worst-looking houses with nothing down on Huaihai Road in Shanghai, and let them know I told you so.

You will thank me for it.

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Post time 2018-11-19 11:57:27 |Display all floors
This post was edited by pnp at 2018-11-19 11:59

Houses should be for living, not for investments!  There are many other forms of investments! Investment in houses drive up house prices and create social discontent as many can't afford to own their own homes.
And worse, houses shoud never be used for speculation.  Both investments and speculation drive up property prices beyond the reach of many hardworking citizens whose income can't keep up with the rising home prices brought about by investments and sepulation.  Govt must enact laws to make it not worthwhile for people to specualate in or invest in houses.  Govt's aim must be to provide affordable housing for its people.  For social stability, Govt must make housing affordable to as many people as possible, not limited to the rich!  

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Post time 2018-11-19 18:58:44 |Display all floors
waste of money for sure !
Round Up is good for developing the mind

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Post time 2018-11-19 22:21:31 |Display all floors
People need houses to live, and anything that has a need can be commercialized. From food to reproduction, housing is just one part of that. In China and everywhere else.

Maybe in future humanity will solve this from the other end - eliminating such needs. Either by totally removing the need, of producing such oversupply that it cannot be called "a need" anymore - any more than having a breath of air can. But it may very well be that we get to commercialize breathable air first.

One thing where China differs from other countries in regard to housing, is that in China owning property (apartment) comes with much more benefits than renting one.

Elsewhere, other than the economic investment of owning a house (and often the land it sits on), renters and owners are on same level when it comes to citizen rights. But not in China.

This should change. But of coursing changing it too fast only creates more playfield for speculation.

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Post time 2018-11-20 11:50:46 |Display all floors
This post was edited by pnp at 2018-11-20 11:52
Jaaja Post time: 2018-11-19 22:21
People need houses to live, and anything that has a need can be commercialized. From food to reprodu ...

"and anything that has a need can be commercialized."

That is the unfortunate situation right now!  That does not mean that the Govt sit idly by while speculators drive up home prices beyond the reach of most citizens.  Govt has all the power to make a change, by making it very expensive to speculate or invest in homes.  In UK and Hong Kong, if I am right,  there is a law to fine home owners who leave homes vacant in the hope of making a profit when prices rise.  That is one of the measures Mainland should look into.  It must kill off unhealthy speculation in homes!

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Post time 2018-11-20 14:13:23 |Display all floors
pnp Post time: 2018-11-20 11:50
"and anything that has a need can be commercialized."

That is the unfortunate situation right now! ...
In UK and Hong Kong, if I am right,  there is a law to fine home owners who leave homes vacant in the hope of making a profit when prices rise.  That is one of the measures Mainland should look into


Perhaps, but it's not so simple.

The profit making starts not from property owners, but real estate developers and ultimately the Chinese state leasing land to those developers.

Local governments are the representatives of the state (it's state-owned land) in these matters, and by many estimates these local governments are already in more debt than they can handle. They need the real estate revenue to pay back those debts, as well as finance the society.

Real estate is one of the key pillars in China's economy. After exports, perhaps the biggest. If you restrict property buying, you shake that delicate balance, and effects to China's real economy may be catastrophic.

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