Posts Tagged ‘rent’

Olympic Rents

Thursday, July 24th, 2008

We saw it coming when Ascott serviced apartments placed an Olympic themed full-page advert on the back page of a magazine two weeks ago. Not wanting to seem glib, but we predicted this back in August 2007. Asking rents at 3-5 times the norm at many hotels and serviced apartments were ridiculous. Yesterday’s article on Bloomberg shed more light on the market. With corporate clients having booked well in advance, the money’s in the bank at the city’s premier hotels. For others, getting premium rents may be a struggle. We know of one high-end serviced apartment in the city that’s officially maintaining the premium Olympic rate but at the same time is discretely offering standard rates to some clients.

Price increases declining

Friday, April 11th, 2008

Economist 0804This week’s Economist devotes a page to gloomy news on China’s property market. It mentions developers in Shanghai retaining list prices but offering rebates taking up to 10% off. While Shenzhen has seen prices drop by 28%, prices in Beijing remain more robust, but sales have definitely slowed.

An article in property-report.com mentions a Central Bank survey in 50 Chinese cities showing that only 14.6% plan to buy homes in the next quarter, down 1.3% from the last quarter. The article also notes growing trend of investors choosing to hold and rent out their properties rather than sell. Rents at popular properties have increased by upto 15% over the last year. With the heady days coming to a close, it will be interesting to see how things pan out. Will increased supply slow the rent increases? With slowing capital gains, will landlords prefer steady rental income over flipping?

Fapiao delivered to your door

Tuesday, November 27th, 2007

Great news from the tax bureau. They’ve started a Fapiao delivery service!

For the uniniated, a Fapiao is a value added tax (VAT) receipt. In China, to ensure VAT is paid by vendors, all receipts for payments must  be issued on a pre-printed receipt issued by the tax authorities. As individuals, landlords have had to trek over and queue at the tax bureau to pay 5% of the rent to get the monthly Fapiao required by the tenant. Now, landlords can just fax the necessary application documents to the bureau. Payment is on delivery. A fantastic service!