So yes, it seems that affordable housing problems are not simply escalating, but also creating new market niches. Recently on the subway, I pick up a leaflet advertising condominiums for sale in Shenzhen East, out near Dachong. The catch? The developers weren’t targeting single families who are buying their first home or even trading up for bigger and better, but rather the developers are targeting potential landlords. From the copy:
Exquisitely designed hotel apartments, 5 years guarrentied rent, as soon as you buy you can start collecting rent.
Much of what I know about Shenzhen, I know through hearsay. How much might be confirmed through other sources — people, reports, maps, or books, for example — is a methodological question. Sometimes I can track down confirmation, other times I can’t. What I do know, however, is that most folks are willing to talk about other people’s affairs, even when not willing to disclose anything about themselves. The other day, I heard a story about the Baoping Community compound and here’s how it goes:
Built in the area around the train station and then moving north parallel to the train tracks, the earliest residences for Shenzhen cadres were small, danwei compounds. In 1980ish, the Xili Industry and Trade Enterprise bought land rights from Caiwuwei Village and built a small compound along what became Heping Road, just east of the railway. Xili went out of business and Shenzhen Travel took over the compound. However, Shenzhen began privatizing danwei houses in 1988, a full ten years before the rest of the country. Thus, China Travel employees who had housing in the residential area were able to purchase their benefit housing (福利房) at cost.
Sometime after privatization, the residential compound was renamed, Baoping. Old and small, the residential compound is no longer upscale housing. Instead, most of the homes are shared rentals (合租), in which each bedroom is rented out and then the kitchen, bathroom, and living spaces are shared. Continue reading