Sunday, March 08, 2009

Temporary Property

I saw something in the Marketwatch comments that I couldn't believe and had to look it up:
China’s urban middle class has fueled a real estate boom, even though all land is owned by the state and purchasers trade only the right to use property on the land for up to 70 years. The disposition of property after that term expires is one of many unsettled issues.
Oh it isn't unsettled, it reverts 'back' to the people, i.e. the government. The note I saw was from a frustrated shopper who was finding property that was built thirty years ago and although he would be 'buying' it, it would for all intents and purposes be a lease since the government would get it shortly after it was paid off.

It's hard to see the Chinese government removing this restriction since it's no doubt a corrupt government gravy train of untold proportions.

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