Chinese property bubble

China's economic growth over the past few years has been phenomenal. Growth in international trade has created a demand for property that has hitherto been unheard of. Urban centres such as Shanghai and Beijing have witnessed a growth in prices to the point where many local people would now be unable to purchase the homes in which they live.

There is a further dimension to the Chinese property market, which is seldom mentioned in the Western media: all the land in China is state owned and there is no existing law in China permitting, let alone protecting, the acquisition of private land ownership.

The “purchasing” of a property in China does not result in the ownership, either in part or in whole, of the property or the land that the property in question is built upon. Rather, the “purchaser” receives a lease of a certain length (normally around 70 years) for the exclusive (but transferable) right to the usage of the property. The law governing what happens after the present lease expires is still being formulated and is one of the hotly debated issues in the Chinese law community.

Further more, as all lands are state owned, the city or provincial government officials in China possess extraordinary powers when it comes to land usage planning and allocation. This is a country where sections of a city can be arbitrarily demolished and rebuilt with scant consultation (if any) with the people concerned. At the time of writing, the law protecting the property leaseholder in situations where the land it locates on is to be redeveloped is ambiguous at best.

Therefore, after taking into account the fact that the Chinese “property market” consists entirely of the trading of these time limited land leases of uncertain future, the magnitude of their recent boom in price, and the potential size of the housing bubble created as a result, is perhaps beyond comparison to any other country in the world at this time.

Home Valuation

- SISV Guidelines-
Scale of Professional Charges
General
Except where otherwise stated, the scale of professional charges set out below are exclusive of disbursements, plans, coples of documents, lithography, traveling and other expenses.

A) VALUATION
1) Capital Valuation of Freehold and Leasehold Property
0.10% on the 1st $500,000;
0.08% on the next $500,000;
0.06% on the next $4,00,000, and
by prior agreement for capital value above $5 million.

Fees for panel Valuers of financial institutions will be negotiable with respective financial institutions.

For revaluation by same Valuer within two years of previous valuation, the discounted fee will be:
1st revaluation - 50% of the fee as computed on the basis of the above-quoted rates;
2nd revaluation - 40% of the fee as computed on the basis of the above-quoted rates;
3rd & subsequence revaluation - 25% of the fee as computed on the basis of the above-quoted rates.

Minimum fee $200.

2) Rental Valuation
The fee will be computed on the basis of annual rent as follows:-
1.50% on the 1st $60,000
1.00% on the next $240,000
0.50% on the balance.

Minimum fee $200.

3) Valuation of Furniture, Fixtures, Trade Stocks and Effects
5.0% of the 1st $5,000
2.5% on the balance.

REDAS eHUB

........ connecting you to the real estate industry.


In response to the encouragement given by various government authorities especially InfoCommunications Development Authority (IDA), Real Estate Developers' Association of Singapore (REDAS) is pleased to launch Redas.com, a property portal backed by four decades of brand name both locally and abroad. This Portal is the Portal serving everybody having an interest in the real estate.

Redas.com is a one-stop value-added information centre, a virtual community as well as an electronic marketplace that offers a broad array of services and resources including but not limited to property search engines, market trends, policy updates, on-line purchases of products and services, business message exchange, and links to other trade associations, professional bodies, government agencies and statutory boards in Singapore and the region.
The main features of Redas.com include the following:

* eProperty



* eDirectory

* eInformation



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* eRedas

* ePropLinks



* ePropFAQs


Positioned to be a neutral entity serving the interest of all, the REDAS Portal aims to improve professionalism among real estate players, create a highly efficient, transparent and integrated online community and a Centre for real estate development and investment locally and worldwide.

We hope to synergise and work closely with the government agencies, professional bodies and trade associations. Together, we look forward to serving REDAS members, other professional organisations as well as the general public more effectively and efficiently.

At redas.com, we believe in :

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