Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
Building and renting out should be profitable. Else nothing is built for renters. Problem is companies buying homes (not building) and try to bribe local politics to upgrade zoning laws for more profitable housing (more flats per m2 land, less living quality). There are cases where lots should be merged for upgrading zonings but this should come from the communities needs not companies’ greeds.
Building and renting out should be non-profit based. It should cover it’s cost, but not be attractive to investors - that keeps the prices from rising. Doesn’t mean that the people doing this work shouldn’t be able to live a decent life, but non-profits can pay normal salaries too.
The result is property developers buying up swathes of land and leaving it vacant until the market reaches a frenzy and they can charge an unholy price for their crappy tract homes built by subcontractors under extreme cost reduction pressures. It doesn’t meet market demand, not remotely.
Zoning and local councils are certainly complicit.
Building and renting out should be profitable. Else nothing is built for renters. Problem is companies buying homes (not building) and try to bribe local politics to upgrade zoning laws for more profitable housing (more flats per m2 land, less living quality). There are cases where lots should be merged for upgrading zonings but this should come from the communities needs not companies’ greeds.
Building and renting out should be non-profit based. It should cover it’s cost, but not be attractive to investors - that keeps the prices from rising. Doesn’t mean that the people doing this work shouldn’t be able to live a decent life, but non-profits can pay normal salaries too.
The result is property developers buying up swathes of land and leaving it vacant until the market reaches a frenzy and they can charge an unholy price for their crappy tract homes built by subcontractors under extreme cost reduction pressures. It doesn’t meet market demand, not remotely.
Zoning and local councils are certainly complicit.