| Author |
Message |
PhatAV8r
Raver
Joined: May 31, 2003
Posts: 384
Location: Qingpu District, SHANGHAI
Status: Offline
|
 Posted:
May 19, 2008 - 02:20 PM |
 
|
|
Chinesegirl_wang, you are wrong, if every expat left tomorrow morning, the Shanghai real estate economy would fall flat on its face. There simply are not 100,000 Chinese households that would pay between 8,000 and 120,000 RMB PER MONTH to rent a service apartment or villa.
The simple loss of that much revenue, and the fact that the majority of landlords are covering second and third properties that are not rented would result in a huge number of delinquencies.
One example however of the strange mentality towards rented housing is Longbai Apartments at the end of Hongqiao Rd just outside the Hongqiao airport.
10 years ago, my friends rented the penthouse apartment for $10,000 USD per month. That gave them five bedrooms and three bathrooms, but was still not anything SPECIAL to speak about. Their apartment was in the building that now faces the A20 outer ring road.
Since the A20 began full operation past the YanAn viaduct to the north (Tianshan Rd direction), the number of empty apartments in that building on that face is now 80% unoccupied.
Even with all those apartments empty, the management will not lower their prices to fill the space. |
|
|
 |
|
angelus512
Reacher
Joined: Sep 27, 2007
Posts: 309
Location: Your house stealing your stuff
Status: Offline
|
| Posted:
May 19, 2008 - 03:19 PM |
|
|
Sick of this losing face cr*p. Somebody should just remind people that care so much about losing face that "You're a mature individual, admit when you're wrong and learn from it"
Otherwise we'd have chinese people running around claiming the world is flat.....otherwise we might lose face. Ridiculous. |
_________________
Wen Jiabao for President!!! |
|
|
|
|
kumlong
LoopKicker
Joined: Oct 18, 2007
Posts: 817
Status: Offline
|
| Posted:
May 19, 2008 - 03:57 PM |
|
|
the reason is because this place has never encountered a recession. thus many locals think that property is a safe bet ie only way is up. look at how they approach stock investment and u can tell. there is no proper finance analysis. Shanghai today reminds me of hk pre 1997 and also of the US property boom. everyone's confidence was so high that they bought properties in the bulk. there was no consideration of how u are going to rent it out and even then there was no consideration of lowering rent. this works when u dont need the money. but when business slows down and u need cash, u are likely to see a contagion effect. |
|
|
|
|
|
SnappySammy
Board Legend
Joined: Nov 01, 2007
Posts: 10108
Status: Offline
|
| Posted:
May 21, 2008 - 11:21 AM |
|
|
It's the Wild Wild West |
_________________
Yank My Doodle It's A Dandy |
|
|
|
|
SnappySammy
Board Legend
Joined: Nov 01, 2007
Posts: 10108
Status: Offline
|
| Posted:
May 21, 2008 - 11:28 AM |
|
|
| andyfff wrote: |
| I have said this before, but it is worth repeating: If you are going to look at an apartment, bring a Chinese person with you, preferably an older woman. She will look the landlord in the eye and say (in Chinese) "Cut the crap." I have had two apartments here, both times I brought a negotiator with me, and both times she got the rent reduced significantly, like more than 25%. |
and both times she also got a commission from the landlord.  |
_________________
Yank My Doodle It's A Dandy |
|
|
|
|
|
|
| |
Forum FAQ
Search
Preferences
Watched Topics
Log in to check your private messages
Log in
