Author: banksbrave

let's discuss housing price in China [Copy link] 中文

Rank: 8Rank: 8

Post time 2006-9-21 20:47:01 |Display all floors

I just did a simple search and found out....

......the latest Shanghai government land auctions yield an average Rmb15 million a hectare!

That works out to be only Rmb1,500 per meter!
Gosh....that is not expensive..

Not sure how they build in the suburb, but if its apartment stype...with 1:6 ratio...ie. 15 to 20 stories high...
land cost is no more than Rmb250 per meter.....or Rmb25,000 for a 100 sm apartment!!!!

Construction cost should not be much more than Rmb2000 pm....I am sure, cost could go as low as Rmb1,000 pm if proper construction methods are used, such as form fits concrete construction. Use of standard materials etc.

Government required infrastructures, roads, drains, parks, rubbish collection centers, walkways, power and water connection, bribes, etc. at most increases the cost 50%?

So it works out to be Rmb2000 x 1.5 + 250 = Rmb3,250 or Rmb325,000 per 100 sm....i reckon! (or Rmb150,000 at the least)
Add in Profits of the real estate developer, you'll get  Rmb225,000 to Rmb500,000 for a simple to a very good quality apartment!!!!


Shanghainese should be able to afford rather large homes (compared to Japanese or Hong Kong people)  with annual incomes of Rmb40,000 to Rmb80,000 per year! That's about the average income of Shanghainese family! Let's add in some low cost housing mandated by the CENTRAL GOVERNMENT, let's say 30%...and home sizes of 50 sm to 60 sm.....it will only increase slightly..


Unless of course, land supply is far short of the market's instrinsic demand! That i got to have some feedback? Is land sufficient in Shanghai?


Green Dragon
Simple analysing

[ Last edited by greendragon at 2006-9-21 08:52 PM ]

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Post time 2006-9-22 09:12:00 |Display all floors
Originally posted by greendragon at 2006-9-21 20:47
......the latest Shanghai government land auctions yield an average Rmb15 million a hectare!

That works out to be only Rmb1,500 per meter!
Gosh....that is not expensive..

Not sure how they b ...
Land cost 1500yuan per sm , what a surprised number ,And now apartment cost 8000 yuan per sm

So the developers earn at least 4000 per sm , that’s why the developers continue to develop high price apartments despite of the authorities controlling regulations .

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Post time 2006-9-22 12:17:31 |Display all floors

Reply #23 bornne's post

YOu mean property in the suburbs is also Rmb8,000 pm?

gosh!

Profiteering! Wah!

How to solve....easy...
release slightly more land than demand to threaten the developers..
Increase the number of developers to increase competition....
ie. get those Wenzhou, Guangzhou, Hong Kong people to be real estate developers if not enough Shanghainese developer......



Green Dragon
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Post time 2006-9-22 13:15:50 |Display all floors
Originally posted by greendragon at 2006-9-22 12:17
YOu mean property in the suburbs is also Rmb8,000 pm?

gosh!

Profiteering! Wah!

How to solve....easy...
release slightly more land than demand to threaten the developers..
Increase the nu ...
more developers ,more competitions ,then the low price ?maybe


but ,u must admit ,the developer profit not belongs to himself , it also belongs to the relatively authorities , so if it impairs the authorities interest , how can the developer get the land

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Post time 2006-9-22 13:20:13 |Display all floors

I continue on some data search.....

..and tadah!

300,000 expatriate worker in a city of 23 million, 15 million registered resident and 8 million floating population!

The Expatriate workers has incomes of Rmb300,000 on average with highest pay Hong Konger apparently? I wonder why?

Normally, expatriate workers spends 20% of income on rent! or buy?
That makes Rmb6,000 a month or Rmb72,000....
giving a gross yield of 8%....Rmb900,000 for a LUXURY apartment in Shanghai!
That's how the price is arrived!

300,000 expatriate...is about 2% of Shanghai resident population of 15 million!
So, the price of those apartment set the DRAGON HEAD prices!
I am sure, many of the expatriates are CHINESE people of Hong Kong, Singapore, Malaya, Thailand, British club or American Born Chinese!!!!....so they might even buy! Then we have the Wenzhou gang with Rmb100 billion investment!

Ha ha ha.....

so, We got to get REAL ESTATE developing company building cheaper class property for the middle class in Shanghai! Same problem we have in Malaya....our city center LUXURY property cost almost Rmb2,500,000 to Rmb8,000,000!!!!!!!

wHIle the more common property only cost Rmb200,000 to Rmb800,000......

and we have no more than 50,000 expatriate, with 1.0million floating population!!!!

Shanghai problem is A VERY LARGE EXPATRIATE POPULATION!!!!!! They have now formed the UPPER CLASS in Shanghai!!!!!



Green Dragon
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[ Last edited by greendragon at 2006-9-22 01:28 PM ]

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Post time 2006-9-22 13:23:44 |Display all floors

Its those financial market people lar!

They are paid very well!

Mutual fund workers, Investment fund worker, hedge fund workers, insurance workers, bankers, bourse remisiers!!!!!

Shanghainese need to GET THE SAME JOBS to be able to afford the HIGH END property...........but if i am Shanghainese with same pay as expatriate.....i'll buy a LANDED PROPERTY VILLA....ha ha ha

why struggle to stay in congested city!  ha ha ha


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Post time 2006-9-22 15:06:09 |Display all floors
Big cities offers more challenging and opportunities, and more room for personal improvement, that is why young person keen on going to big cities.

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