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