Understanding China, One Blog at a Time

An American in China

China Halting Sale of Homes To Foreigners- Thank You!!

Posted by w_thames_the_d on November 15, 2010


In the excerpt below it is reported that China is halting or restricting the sale of homes to foreigners. lately the housing prices in China have been going through the roof (pardon the pun) , and the typical chinaman is pretty upset. Thus, uncle chicom is trying to curb this problem….
My take
-scapegoating- pretty typical of China to do something like this. The real problem is that the rich in China do not have all of the investmeent options of those of us in the west. They cannot buy stocks anywhere they choose, but must use an uncle chicom authorized agent and invest into a ‘basket of stock’ rather than buy them individually. So the Chinese, being rent seekers (another pun) seek to buy up land and houses before the masses have enough money to do so. Thus the typical chinaman is upset that they cannot afford a home as the prices are outrageous. The chicoms, instead of addressing the problem- which in great part is them and their purchasing of properties, merely blame the foreigners for the rising housing prices.
-its another incidence of Chinese neurotic fear of foreigners and the unknown
-In reality I would say ‘thanks China’ , I mean who really wants a home here anyway? My place is ‘new to me” four years old, but it looks like its about 20-25 years old. The buildings here are so poorly made that they do not wear well. Thus, I know of very very few foreingers who risk buying a home here.
slight digression- also in China you cannot buy the land only the home. So if you buy a home, that is what you have bought, the four walls, nothing more. The land is of the people. Oh yeah, and as the law stands now, the house is only yours for 70 years, after that the government can do as they wish with it. —Yeah, thats the law in China today.

excerpt:
BEIJING – China’s Ministry of Housing and Urban Rural Development announced Monday that purchases of housing by overseas organizations and individuals in the country would be capped or restricted, a move widely seen as combating speculative money from overseas that might flow into the property market.

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