Real estate experiments: the news from China
Considered the Great Power of the last decades, with a population equal to 18.54% of the total world, China still amazes.
The economy is going through a period of extraordinary changes: the traditional sectors of the "old economy" are combined with new ones (from online financial services to e-commerce) at the same time as the Green boost promoted by the authorities to protect the environment.
The forecasts of downsizing by economists last year turned out to be bankrupt.
China does not stop its growth and continues to dominate the international economic scene.
Many tourists who bought a house in China.
The Chinese president has inaugurated the new year with a novelty: the largest real estate experiment in the world to monitor house prices.
Asia's chief economist at Mizuho Securities Asia Ltd in Hong Kong said the Chinese real estate market is moving towards leases.
Due to the sharp rise in house prices, a new type of investor, the so-called "life tenants", is expanding. The capitalist frenzy that has led over the years to guaranteeing shelter for workers has also led to an exponential rise in property prices, particularly in Beijing and Shanghai.
The strong demand arising from the now uncontrollable demand for leases to the detriment of sales, led China to incentivize projects dedicated to the construction of real estate complexes for rent.
The Chinese bet, if it were to succeed, would lead to a turnover of 700 billion dollars a year. Housing projects were also financed with hypothetical $ 400 monthly income.
The municipal governments of Beijing and Shanghai have auctioned building plots with the aim of selling them from real estate companies that can carry out rent-only projects.
Banks are also offering their contribution: they have set up lines of credit for the construction companies to finance these projects (we only remember renting). Last but not least, the Shanghai Stock Exchange is encouraging the creation of investment products guaranteed by rental income.
The economy is going through a period of extraordinary changes: the traditional sectors of the "old economy" are combined with new ones (from online financial services to e-commerce) at the same time as the Green boost promoted by the authorities to protect the environment.
The forecasts of downsizing by economists last year turned out to be bankrupt.
China does not stop its growth and continues to dominate the international economic scene.
Many tourists who bought a house in China.
The Chinese president has inaugurated the new year with a novelty: the largest real estate experiment in the world to monitor house prices.
Asia's chief economist at Mizuho Securities Asia Ltd in Hong Kong said the Chinese real estate market is moving towards leases.
Due to the sharp rise in house prices, a new type of investor, the so-called "life tenants", is expanding. The capitalist frenzy that has led over the years to guaranteeing shelter for workers has also led to an exponential rise in property prices, particularly in Beijing and Shanghai.
The strong demand arising from the now uncontrollable demand for leases to the detriment of sales, led China to incentivize projects dedicated to the construction of real estate complexes for rent.
The Chinese bet, if it were to succeed, would lead to a turnover of 700 billion dollars a year. Housing projects were also financed with hypothetical $ 400 monthly income.
The municipal governments of Beijing and Shanghai have auctioned building plots with the aim of selling them from real estate companies that can carry out rent-only projects.
Banks are also offering their contribution: they have set up lines of credit for the construction companies to finance these projects (we only remember renting). Last but not least, the Shanghai Stock Exchange is encouraging the creation of investment products guaranteed by rental income.
