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Housing Prices

satii (41 posts) • 0

Back on topic...

Tiger, I not only match your sentiments on Eye of Spring's prime location, but I'll raise you.

EoS is essentially above the MRT station. If deemed a walking distance, it is a downstair descent.

Like the eye of a storm, the 'Eye' here denotes center of Spring City. Not the all-watching Mordor scanning Frodo variety.

Wherever KM's current CBD is designated, EoS along with Hang Lung's Spring 66 are destined to become the CBD epicenter. Four skyscrapers strong. Situated above possible triple MRT interchange station. Chinese may refer to such 'golden' locations as 金华地段.

Where our path diverge, however, is buyers' demand.

I've been to residential sale openings/开盘 where buyers push and shove while yelling at one another. Resembling famished survivors of post apocalypse battling for last morsel of tudou, or "po-ta-toe" in hobbit context.

In contrast, EoS sales office was practically empty like a LV store sans Chinese shoppers. Sales agents outnumber potential buyers 5 to 1.

Most telling was sales' unenthusiast demeanor when a few onlookers arrived at the sales center. A telltale sign the developer is neither intent on releasing units from their steel beam grip, nor incentivizing smiley-go-getter-inducing commission for their sales team. Apparently the team got the memo.

I may have been fooled by seagull hearsay, but that quiet church mouse congregation ain't pulling one on anyone. Particularly not the likes of infamous Wenzhou real estate speculators group (温州炒房团).

Professional/career 炒房者 like them are known to prepurchase in bulk without batting eye nor being present in body on 开盘 day. They would wire money days in advance, like entering cheat codes in the digital monopoly game. Claiming Boardwalk, Park Place, and the four Railroads before tossing the dice.

温州帮 and similar speculator groups scout nationwide for locations with optimal growth potentials. Maybe these savvy, real estate prospectors are cognizant Km real estate market is relatively slower, carry higher opportunity costs.

They've either gobbled up EoS without public knowledge, or made a hard pass knowing that flipping 10-20 million yuan per apartment unit is a risky endeavor w/ limited upside. Because how many buyers have 20-40M to buy one unit? Not many. Not the amateur 炒房 masses. Perhaps more in Shanghai, but less here. The wealthy would rather opt for garden villas, like ones of suburbia dream homes in American movies. Moreover, Km is still a long way from a Manhattan-esque metropolitan draw.

Remember, 40k/sqm "." Meaning, "starting price" for possibly the worst, lower units directly facing the opposite taller of the two skyscrapers with limited view. As consumers in China, we should all be vigilant with the small font "“ character.

Like I said earlier, perhaps Junfa developer is misleading the actual unit sizes to prevent speculators from flipping their smaller and cheaper units at early stages of construction, so as to reap more themselves later in development.

tigertigerathome (30 posts) • 0

Yes it does sound a little like there may have been pre-sales. A lot of the property may have already been disposed of in sales centers in Tier One cities. But that is speculation on my part.
As for the rich only wanting villas, most of the lower rich (not super rich) that I have come into contact with have a villa for the weekend and an apartment downtown for work. A few have multiple properties.

There are also companies that are cash rich, and with low bank interest rates, and little movement in the stock markets, that are still tying up cash in property.

satii (41 posts) • 0

Agreed, given the devalued Yuan right now, I can see foreign companies bought on BRI prospects sticking their flags on the bull's Eye for long-term investment.

Keep in mind, developers would release the bare minimum amount of units as required by law. So only a small fraction of total units have been "disposed" of, if the case. The sales sideshow is all pro forma. Junfa is playing the waiting game, albeit a slow one in Km.

As for the super rich Chinese, they go global where the USD is at. Buying houses in Bel Air for their "parachute kids." Units in NYC's Trump Tower to flaunt prestige to their friends. Entire luxury hotels in Hawaii. If in Mainland's lesser than tier one cities, entire buildings, even small skyscrapers.

I have stories, makings of fun conversation. But the amount of corruption that goes on with officials, could get myself and this website in trouble.

seaforte03 (15 posts) • 0

@Denis
Start with a credit card. If you can get a credit card - then you can work your way up to a housing bank loan.

As with all countries, the bank will look at your employment and the company you work for to determine their risk.

If you've been in-country for less than (arbitrarily) 2-3 years - the bank can't generate a credit profile and will probably decline.

So - start with the credit card...

tigertigerathome (30 posts) • 0

It was possible in the past, but I am not sure what the current regulations are, and the enforcement thereof.

The other thing is that regulations on moving money between countries has also become more of a focus of attention than before.

Regards deposits, I think 30% is the minimum deposit required for domestic property purchase in China.

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