Small property room, a hot potato

Published on June 17, 2009 by connie | This story has been viewed 749 views

As the small property rooms have got a quota of 50% in Shenzhen’s housing market, any simply legalization or non-legalization will all cause a load that it can not bear to Shenzhen’s housing market. With the issuance of the order, by Ministry of Land and Resource, that requires the local governments to resolutely stop and properly handle the small property rooms, the rumor that the small property rooms would be changed to commercial housing is clarified and the rising price of the small property rooms also turns down accordingly.

A partner of a Law Firm joining in the small property room issues revealed, the local governments were between the rock and the hard place on the issues of small property rooms. On one side, the Center Committee called for stopping strictly, and on the other side, the small property rooms had bloomed all over the places, which made it hard for the small property to be legalized and impossible to be checked thoroughly. Maybe a middle course was the best measure.

The so-called small property rooms are actually residential buildings constructed on the collective lands, which has developed fast because they meet the habitation requirements of the tens of thousands of mobile population in Shenzhen due to the low prices of 3000 to 4000 yuan per square meter that is far below the commercial residential housings’ prices in Shenzhen urban areas.

Yin Xiangwu, a senior personage of Shenzhen real estate industry said Shenzhen now had total residential housing areas of 260 million square meters, of which 160 million was small property rooms. The above mentioned partner of a Law Firm also said 60% residential buildings are small property rooms within the region he was working. However, due to the unconformity with exiting Land Laws and other regulations, Shenzhen had put forward several rectification measures since 1990s and now, under the situation that the small property rooms developed faster and it was not impossible to pull down all, Shenzhen came out information that the small property rooms could be changed into commercial residential housings through paying the land use right fee. The prices of the small property rooms were instantly raising and the information of purchasing in a large quantity frequently appeared.

However, Yin Xiangwu said, legalizing the small property rooms are not feasible.

On June 9, Ministry of Resource and Land formally heard the debriefing of Shenzhen Municipal Government, which came out the conclusion that the small property rooms violated the land management laws and city and county programming and constructing management laws.

Some experts suggested the small property rooms can be rationalized on the base of the exiting projects, but property right certificates would not be issued. They suggested establishing Stock Corporation owned by the collectives to preside over the operation and flow as well as income distribution of the small property rooms and at the same time build up monitoring system that is independent of the commercial residential buildings’ system.

Shenzhen Post staff Connie contributes to the story.
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