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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (53828)	9/29/2004 12:01:54 PM
From: RealMuLan	Read Replies (1) \| Respond to of 74559

That guy see China with some "colorful" glasses, I think<g> Booming apartment building in big cities in China is mainly consumed by city duelers (including some successful capable migrants), rural migrants can hardly afford them. Most of rural migrants are renters. So it is quite popular for a city resident who has a couple of apartments, and rent them out to migrant workers. In Beijing, the apartment sale is pretty good, a lot of buildings are sold 1-2 years before finishing. In Shanghai, is not so good. One reason is that the price increase in Shanghai (an annual rate if >20%) is much higher than in Beijing (about 10%). and maybe the supply is also much more in Shanghai too. The net profit margin for real estate developers in China is as high as 40%! a lot of developers are claiming that they do not get their hands dirty below that. So I have NO sympathy whatsoever in case they will have to lose big. Although a big part of the loss have to be shared by common tax payers. As for the ratio bet. Business and apartment, most apartments located in “bedroom zone”, so you do not see much businesses around. majority city resident are commuters.