Qingdao China Real Estate
A number of readers have come forward to draw my attention to a recent article entitled "Perhaps China's real estate bubble has just burst." This is confirmed by a report from the People's Bank of China, which can be seen in the chart below and in our previous post on the same subject.
While official data suggest that China's property market has grown by 7% in the past 12 months, growing by 1% in September alone, other figures suggest that interest in new homes has recently fallen by almost a third. Real estate sales in China totaled 1.2 billion yuan ($217 million) in the first half of this year, according to the People's Bank of China.
The Chinese real estate market, to put it bluntly, is that it cannot be led to return to the healthy and dynamic state of 2012. Property prices in Qingdao have fallen 20-30 per cent in the past two years as developers try to sell their properties anxiously. Since June this year, the number of new apartments officially advertised for sale in China's second-largest city has fallen by an average of 30%. This has come as a shock to local property buyers, as the market has only seen price rises for many years.
This press release may contain certain forward-looking statements about the Company's business, operations, financial condition and financial results. Oumei is a leading real estate developer in China with headquarters in Qingdao, China. The company develops, develops and sells residential and commercial real estate, including residential, commercial, office and retail properties in Beijing, Shanghai, Guangzhou and Guangdong, as well as residential properties in Hong Kong.
The Qingdao World Expo has 6156 booths of international standard and is located in the heart of the city with a population of more than 1.5 million people. It has had a significant impact on the economic development of China and the world. The world's 500 largest railway companies have invested in the development and construction of new railway lines in China and in the construction and maintenance of railway infrastructure.
Qingdao is the largest city in Shandong and has played an important role in the development of China's economic development and in the construction of the world's largest railway line. Shandsong is home to many expats and foreigners who have been working or studying in China for at least a year are allowed to buy a house. Qing dao foreigners must contribute at least 50% of their income and pay at least 1.5% of their income to obtain a residential property loan. The house or house can be an apartment with a maximum of 2,000 square meters of space for a total of 3,500 square meters of office space.
In addition, Chinese residents abroad must now sign a declaration that they will live in the house and will not sell, rent or rent it. Despite the new rules, foreign investors, both commercial and private, remain concerned about the lack of protection of their property rights, especially in cities such as Qingdao. As a result, most Chinese property developers refuse to terminate contracts of sale, and none of the remedies have been considered.
He said he did not see the new law as a solution to the problems of foreign investors in the real estate market in Qingdao. I travel to China all the time and am very concerned about the lack of protection for foreign property owners in the city.
A poor city in Hebei that was a village a decade ago is selling a former family home in a poor neighborhood of Qingdao City, China's second-largest city, for more than $1.5 million.
In Beijing, average rent for high-end apartments rose to CNY 1.5 million in the first quarter of 2019, about $1,000 more than in the previous quarter. In Shanghai, average rents for residential properties as a whole decreased slightly (0.2%) quarter-on-quarter, but rose from Q3 2018 to Q2 2019 (Cny 2.3%), according to the China Real Estate Association.
If the travelers "story is not to be believed, there is a separate Chinese government report from 2010 that concluded that the home-ownership rate in China was nearly 90% at the time. In July 2006, the Ministry of Construction issued a declaration requiring foreigners to live in the country for at least ten years before they can buy a house. This does not mean that housing has become more expensive in China than in other parts of the world, but that rental yields in Beijing and Shanghai are extremely low, owing to high housing costs and the lack of affordable housing for foreigners in these cities.
Local governments in lower-lying cities have also begun to introduce new controls on home purchases, most of which include a resale ban within two to three years of purchase. Zhumadian, 800 km west of Shanghai, said it would lower the minimum deposit for house purchases, while Haining in eastern Zhejiang province has decided to suspend restrictions on foreigners buying homes. In September 2017, Guangdong Province, home to China's second-largest city, Guangzhou, reportedly passed a series of new house purchase control regulations for the first time in its history, with a maximum two or three-year resale ban on houses. We have seen that during the previous downturn in 2014, homeowners demanded that developers repay their money, and that their losses could be much higher. According to a report by the China Real Estate Management Association, local governments in the lower echelons of cities are also beginning to roll back uneased regulations and stick to property management goals.