Cambridge Realty

Is this the tour of China after the recent decline in the housing bubble crash of the U.S.? China is the world's second largest economy with a $ 4.909 billion or 7.92% of the global economy and real estate contributes the lion's share of 10% to it. With the subprime United States, the world has not yet emerged from the shock and now China leading to the housing boom. The Chinese government supports the reality with its aggressive policy to the technical specifications of the great boom contribute to its GDP. The rightwing government sufficiently to loosen monetary policy and financial embargo against the realty should reach the double digit growth?

Government intends to GDP growth of mass urbanization in the country and real estate sector plays a vital role in achieving the results carefully. clear expression of the Communist Party of this view has come under no. A document in January, a draft policy for 2010. In this paper, China has promised to reform the hukou system by giving citizens the right to the same services as rural dwellers, but only if they move to smaller cities in their own province. Chinese law says farmland is collectively owned by villages. In reality, land is controlled by local governments. They, and not farmers, have the power to decide who can transform the fields in real estate. Farmers say the rules are set reclamation against them, giving officials and developers well-connected power to push them off the land without fair compensation. In some cases, local governments, which earned more than 230 billion auction land in 2009, are also accused of demolishing old neighborhoods and unfairly compensate residents. In a recent survey conducted by China Youth Daily, a state newspaper, more than 80 percent of respondents say that local governments are "a major driving force" behind the soaring property prices.

In 2025, the country has 221 cities with a population of one million or more, compared to 35 in Europe, according to a report by McKinsey, the consulting firm. China had 108 of these cities in 2004. The sheer numbers involved in the urbanization of China are enormous. To cope with the onslaught of d'habitants new town, the country will open five billion square meters of roads, build 5 million buildings, including 50,000 skyscrapers, and add up to 170 transit systems, all by 2025. The McKinsey report said.

In the mission of urbanization in transforming towns and dusty villages in cities aspiring to impact on the economy and society for a time, they leave behind worrying levels of debt stacking. In such a rush, the quality of work has been hampered, less thought has been given to energy efficiency and economic requirements of the common man. It happened so quickly that cities have not had the opportunity to grow organically. Urbanization is an inevitable trend. It's not whether you like it or not. There is no other choice. But this path of urbanization is a bubble deformed. As Mr.Jiao nanbo, Secretary General of the Association of Home Inspector's management of China, a large number of villas and town houses in Beijing are inspected construction defects and certain faults may even endanger lives. Compared with apartments in Beijing, although all had quality problems, villas and townhomes have more construction defects and the quality is very bad.

An interesting fact is that most of these real estate projects are taken up by Crown corporations, which are ultimately controlled by the central government. These are companies who work for central government to maintain the building boom in achieving the GDP growth expected. This is driving up the price of land on the large for large building projects. Land records show that 82 percent of land auctions in Beijing this year have been won by large private enterprises develop bidding.