Understanding China, One Blog at a Time

An American in China

Getting Rich in China the Easy Way- Corruption

Posted by w_thames_the_d on March 20, 2010


This is from the China Daily. There is a scandal in a southern province about land being sold to governmental officials for deep discounts which enabled them to get rich just buying and selling a property. For instance, the officials buy a piece of land for U$ 3000 in an initial offering only to them, and then in the 2nd round the land is sold to some other select folks for say, U$3500, and then a third round for U$5000 and then opened to the public. By the time the public sees the property, the value has doubled or tripled.

The government has denied it, but I have it on very very very good account that this happened in another hot property area now. I am no longer surprised.

Excerpt:

Wenzhou officials claim data on website forum ‘totally unreliable’

SHANGHAI: Local authorities in Wenzhou of East China’s Zhejiang province are trying hard to calm public anger over what might be another housing scandal involving local government officials.

At a hastily-called press conference on Wednesday morning, officials from the commission for disciplinary inspection of the Wenzhou committee of the Communist Party of China denied an online posting that local government officials bought upper-class properties at preferential prices.

On Saturday, a netizen with the registered ID “wzjdc818” posted an article on a popular online forum in Wenzhou exposing the hidden rules in real estate, as well as the illegal dealings between Golden City estate agency and government officials in Dongzhou, which apparently alluded to Wenzhou.

The article said that the involved officials could easily obtain profits of up to 1 million yuan because of the preferential selling prices offered to them.

Golden City estate agency has sold 1,333 commercial apartments in three phases.

The article said that the involved officials could easily obtain profits of up to 1 million yuan because of the preferential selling prices offered to them.

Golden City estate agency has sold 1,333 commercial apartments in three phases.

In the first phase, 345 blocks were sold and 52 were reserved with an average price of 22,000 yuan per square meter.

In the second phase, 635 blocks were sold and 108 were reserved with an average price of 24,000 yuan.

In the third phase, 353 blocks were sold and 72 were reserved with an average price of 28,000 yuan.

The netizen suggested that the reserved blocks were primarily sold to 32 local officials.

The netizen suggested that the reserved blocks were primarily sold to 32 local officials.

A list of 32 government officers, giving their surnames and job positions, who have reportedly bought the apartments at far below than the market value, was attached with the online article.

The officials include senior officers of city departments of construction, urban planning and housing.

The Wenzhou commission for disciplinary inspection, however, declared on Wednesday that the facts given on the forum are totally unreliable and that the Golden City real estate agency had followed the regulation on the prices with a 2 percent pre-order discount.

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