Why have the prices for accommodation gone up so quickly and so dramatically in Kunming over the past few months?
Simple laws of supply and demand, and in a dash of speculation and viola. By modernizing Kunming and tearing old building in Kunming, this removed a lot of the housing supply available. All those peasant works have no place to live now and so need to look for new places to stay. By focusing economic development on urban areas rather than rural ones, this cause a lot of influx of people coming to the city to improve their livelihoods and this adding to the housing demand. And finally, most college grads once they finish their education, are not definitely not planning on moving back to the farm and milking the cows with their new found knowledge and so, also stay in the city to look for jobs. So you have a shrinking supply and increased demand. So economics 101 would tell you that prices should go up. The final fact is that the central government is now cracking down on housing speculation, ie, it is becoming more difficult to flip house and that's scaring off a lot of potential buys. And so what do these homeowners do? Rather than lowering the price to attract buyers, they now rent them out. And a funny thing happens in China, where as laws of economics would stipulate that increased competition should result in lowered prices, in China, it's actually the opposite. As people compete to make more money than the previous, they are bidding the price up because they know people will rent even if it is outrageous because they have no choice. Actually this does happen in free market societies and that's why most cities have rent control policies to keep thing in check.
PS...I should've proof-read it before I posted. My fourth graded teacher is going to be so pissed if she saw this....
I'd just now realize the new redesign has an edit function... unfortunately, it only allows edits on the most recent post... d'oh!
Kunming is beautiful but it's still far away from many important things like embassies,international flights reliable universities and schools .I wonder what make the prices of some apartments exceeds 10 000 per meter ?.Last month i went to north of China to a city not far from Beijing.the apartments still in moderate rates and one meter was still around 3000 Per square meter .
Easy loans. Government investment in construction to keep the economy going. Insider selling, and price fixing.
Essentially a housing bubble with Chinese characteristics. People get easy loans, buy new apartments from friends before they are available to the public. Gather with their friends and say don't sell or rent below such and such price. Wait a short amount of time and sell it.
That's why the rent is so high now. Many of the apartments were just bought on easy loans, and they use the rent to pay off the loans. It's also why you see so many empty apartments in new buildings that are 2 or 3 years old, the owners are just waiting to sell them to make a quick buck.
The central government knows this and are scared shitless because they aren't quite sure how to cool the economy down without bursting the bubble.
For investors with money to burn, Eye of Spring (across from Spring 66) luxury apartments are now on the market. Completion in '22, but shopping mall below opens earlier, scheduled for Sep. next year.
Listing prices are sky high like skyscrapers themselves. 40K/sqm starting, 天价 ceiling tba. New housing price record for KM apts?
Units are huge. 300sqm are the smallest. Up to 1,000 sqm. Total prices are all above 1,200万 for smallest units. Nearly the entire skyscraper, the smaller of the two EoS buildings on the south side, will be these high-end, ginormous apartment units.
Demand ought to be low imho. Highly difficult to sell given the relative lackluster economy and investment climate. Unless Junfa developer is trying to incubate for max returns by avoiding laws combating 养地养房 schemes for active projects. Junfa may be listing future value prices now to satisfy mandatory policy of allotting units for public consumption, in order to circumvent selling lower. So either they are not trying to sell PV prices, or lying about the unit sizes to exaggerate total price until three years when overall housing market prices may be higher.
But good news for those embracing the old and resisting modernity. Judging by the ground plan, Dongfeng Square will return with large public spaces with fountains to the North of their development in front of Dongfeng Road MRT entrances.
To be honest, although 40k/sqm is at the upper end of the market, but places like this were selling for over 30k 8 years ago.
Never underestimate the value of central locations in the Chinese market. Dongfang Sq is touching the CBD, where the higher earners are, as well as being convenient for everything else. It is also walking distance to the Metro station, which on its own can add 30% to the value of a property.
I think that they will sell quickly, just my 2c.
Junfa sounds kind of apt.
I hereby denounce cloudtrapezer's nefarious plot to sow confusion by using the word "apt" as the last word in a sentence so that it's followed by a period, which makes it appear he is using the "apt." abbreviation for "apartment". This is especially diabolical because it was done in a thread discussing apartments.
There should be recognition of the emotional duress suffered by those who spent longer than we care to admit fruitlessly trying to parse the meaning of "Junfa sounds kind of apartment".
I got herenow's joke. It wasn't very funny but three downvotes seems harsh. So I've upgraded him to two.