Photo by 发课 吴
Since the end of 2015, property values have been heating up throughout China. In over 15 cities, home prices increased over 20% since September 2015. Although home prices have been steadily climbing for over a decade, the past year recorded the largest jump since 2010.
Home prices in Shanghai, Shenzhen, and Dongguan recorded over a 40% (source in Chinese) increase in less than a year, which makes property value in China’s largest cities comparable to international hubs such as New York and London. However, home buyers do not get nearly the value for their money. Homeowners in China only enjoy the right to use the property on long lease terms. Most residential property contracts grant a 70-year right of use, and the policy for renewal terms has not yet been clarified. These lease terms not only determine the limited rights of owning a home, but also dictate the quality of construction. View full post »