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This isn't true? Real estate prices in Shanghai and Beijing are lower (in absolute terms) than SF and NY. Relative to local incomes they're probably more expens
by chibg10 8y ago
This isn't true? Real estate prices in Shanghai and Beijing are lower (in absolute terms) than SF and NY. Relative to local incomes they're probably more expensive though.
Shanghai and Beijing are (I believe) more expensive than Chicago or Atlanta in absolute terms.
- stevenwoo 8y agoI vaguely recall reading somewhere that all real estate ownership in China is limited to 70 years for residential buildings, and that is one reason why so many Chinese invest overseas - to build capital over generations.
- rahimnathwani 8y agoLand cannot be owned privately, but the government can grant a long lease (max 70 years for residential, 50 years for commercial). But IIRC the first of those 70 leases has yet to expire, so we don't know what will happen when they do.
- digaozao 8y agoWhat happens when you sell? The person only gets 70-x years of leasing? Or it renews?
- rahimnathwani 8y agoThe lease applies to the land on which the apartment is built. The 'owner' of the apartment building cannot grant you a lease that goes beyond the period remaining on the land lease. So you get 70-x. But not sure what will happen when these leases begin to expire.
- seanmcdirmid 8y agoYou can find a 90 sqm apartment in Beijing for $800k, 1 million if it’s in a brand new building. And Shanghai is much worse than BJ. It is definitely comparable to Seattle, if not San Francisco. Given such an anemic stock market, everyone invests in real estate instead, leading to a massive bubble not seen since Japan in the 80s.