I posted Hard to Buy a House in Shanghai in August, 2003. One year and a quarter past. When we enter the new year of 2005, does the situation change? Is the real estate price cooling Down? The answer is definitely no.
My friends went to see a newly opened property near my apartment in Pudong (namely, Hai Shang International Garden). Their price is pretty good – 9000 RMB per sq. meter. They just opened and people rush there. There are so many people waiting to buy the houses that the development company made the following rules:
- The right to buy the house is based on lucky-draw.
- All buyers needs to register with their National ID and hand in 20,000 RMB first to be entiled to the lucky-draw.
- The winning rate will be one out of 50. That means, only one person out of 50 candidates will be granted the right to buy their houses.
- If you want to make sure you can buy one apartment, show them 1 million RMB in cash.
- The 20,000 RMB will be returned to those failed in the bid.
7 Days and 7 Nights to Buy House
At the other property near the Centuary Park (about 20 minutes walk from my apartment), they just opened to public. People waited outside (in freezing air and experienced snow) for 7 days. They stand, eat, and sleep in the line. The price for the apartment is 16,000 RMB per sq. meter (or 2000 USD per sq. meter). This is based on the description of my friends living in that area.
Shanghai’s Real Estate Price is Still Rising
Despite of all kinds of negative information on the Shanghai real estate market, the price of the apartments kept rising in 2004 and entered the fast raising period. It is astonishing, strange, and confusing!