MIPIM Property Market Highlights in China
The global market trends are really important for the real estate professional, developers, investors, corporate end users, public authorities, architects, hotel groups, and even for the property associations. However, knowing all the latest happenings of the world’s property market is not easy.
MIPIM has been playing an essential role in connecting all of the interested entities in the latest investments and development opportunities of the real estate industry. The world property market surely is in the hands of MIPIM 2014.
Let’s see what MIPIM has to say about the property market in China. In the first quarter of the year 2013, it was calculated that the ratio of spending on new homes was up 69 percent as compared to the spending in the previous year.
According to China Central Television (CCTV) state television survey, it has been reported that the rent rate in Beijing has increased by 82 percent since the year 2008. The average sale prices in Guangzhou increased by 34.9 percent in the 12 months till March. There is more, the private landlord investment on new homes has increased by 21 percent in 2012 alone. This certainly is a challenging figure.
Well, the largest residential market of the world surely is giving lessons to the markets in Europe. China has the population of 1.4 billion people. Most of the population can be found in cities like Beijing, Shanghai, and Chongqing. Thus, it is surprising to see such emphasis on private residential ownership in the country. Almost 45 percent of the homes are owner occupied now.
Most of the urban lands in China are owned by the government. The rural lands on the other hand are owned by the locals. This means that the buyer or the renter will only own/rent the space/ building not the plot in which the building is going to be constructed. The lease period of the land can be prolonged from 30 to 70 years. The value of the property falls as the lease periods comes near to expiry.
According to the property law in China, those who wish to purchase an older home in China, should make sure that it is de-registered. Any individual, who can claim a stake on the property, must agree to sell it and must also be compensated. This is a time consuming process indeed. At times, it might impossible to obtain the consent of the owners. However, this law has been practiced since 1990 according to which a land registry has to be established in the city, where the property is located.
For more information on the global property market, head to MIPIM 2014 March 11-14, 2014 in Cannes. Contact EAS for the best in meeting space, special events, hotels, rental apartments, luxury accommodation, restaurants, short term rentals, marketing and event management. For further information, click here.