alt Hacker NewsYou're spreading a common misconception. No one really "owns" a home in China. What they're usually purchasing is a 70-year lease on the land. The hope is that the lease can be renewed on favorable terms but there's no guarantee.
Replies
chadgpt2 • yesterday at 10:21 PM
It sounds that you spend money and receive a service which cannot be converted into an investment. Are the people housed, in the end? Is the housing market distorted by rampant speculation? Does the system work?
This is misleading, arguably false.
All land in China is state-owned. You own the building. You don't own the land the building is on. In this way, it's really no different to leasehold in the UK or land-lease in NYC. Do we say that all these UK leaseholders don't really "own" a house? Is there the same fearmongering?
And in the UK, it's often the Royal Family or some aristocratic landholder who owns the land (eg the Duke of Westminster owns an awful lot of London land) whereas in China, the lease renewal is essentially automatic and there's no property tax or land lease that gets paid.
It's also worth adding you never really truly own property anywhere. The government is free to change their mind at any time. And they do. All the time eg eminent domain.