Property Rights in China

I don't know about China in particular but I do know that in communist countries private property does not exist. Maybe China is different, who knows?

The Chinese are now allowed to own homes/apartments. The catch is it can be quite expensive, and mortgages have to be paid off in a few years, say 10, unlike the 30-year mortgages we can get in the US

I was talking to a former student the other day who has <BR>bought an apartment, so I guess so.<BR><BR>He also said the value of it has trebled or quadrupled in <BR>the 3 or so years that he has had it.

Yes, Chinese can purchase their own homes and apartments, but not the land underneath--all land currently belongs to the "people" collectively (as in government). They actually buy a lease holding, generally around 70 years with some local gov't variations, and is "renewable". Mortgages are a relatively new thing in China but are available, and from a Chinese bank, they are generally for a maximum of 15-20 years, depending on age of the buyer at the time of purchase. Adjustable rate set by the government (doesn't change very often), and down payments required are now generally 30%. Foreigners with residence permits and meeting certain other requirements can also do the same, and have the additional option of foreign banks that will do foreign currency mortgages. At least in the major cities, China is moving rapidly from a government-provided/assigned housing allocation system to a "privatized" system. However, it is all a work in progress, and there are still a lot of problems and emerging issues to be resolved having to do with property/leasehold rights.

What TG says is correct especially about the price hike. Two things to add: Only farmers actually OWN the land their house is built on. Others only lease the apartments for around 75 years from new. It is possible for foreigners to buy (lease) an apartment. This Gwailo has done that.

In all modern cities along the east coast of China there are massive advertising campaigns for private ownership apartments. The complex where I live has 3000 apartments and there are NONE currently available for sale but a further 4 tower blocks are under construction which will have several hundred more apartments. My apartment is owned by a local investor who lives onsite. My young colleagues are delaying marriage until they can afford to buy an apartment - it is expected now.

of course
if you are rich, you can buy what you want
you can own the villa

The Constitution of the PRC, adopted in 1982, was amended in March of 2004 with regards to property rights.

"legally obtained private property of the citizens shall not be violated"

Is what it said. It was also amended regarding human rights. But since then, nothing's really changed. The amendments seem to have been thrown in just to counter some growing social unrest. Property rights, whatever exist, still don't offer the owners protection and owners are still thrown in jail when they try to use the laws to defend themselves. Probably the case for much of the constitution.

If you have money, you can buy and own anything you like in China.

I heard this was not possible before the 1980's, people didn't even have bank accounts, don't know this was true or not.