Real estate continues its climb

The expat

By He Na

Some foreigners are instantly recognizable to Chinese people and Luc Bendza, 43, from Gabon is one of them. He often appears on Chinese television performing martial arts, and has played a number of roles in several popular movies and TV plays. Initially attracted by Chinese kung fu films, he moved to China in 1983.

In addition to his acting work, Bendza helps Chinese enterprises to invest in African countries.

In many people's eyes, he's a star and so they assume he owns a large house or a villa. However, Beijing's highly inflated house prices are as big headache for him as every one else.

"The longer I stay in China, the more I like the Chinese, I think. During the past two decades, I have waited for property prices to fall so I could afford to really settle down in Beijing. However, prices have risen ever higher following the introduction of each new control measure," said Bendza.

"My desire to have my own apartment has grown since my son was born last year. I feel obliged to give him a stable life and, to me, an apartment of our own is a guarantee of that stability," he said.

"I know the property policies well. My wife is Chinese and she and I discussed the subject a lot before the new control polices came into force on March 31."

The news that the policies were being introduced saw huge numbers of potential buyers taking the plunge to ensure they didn't get caught out by another rapid price increase.

"Our experience and instincts told us the new polices would be stricter than ever. If we didn't grasp the chance, we may have lost it forever. The price of new homes was sure to increase a lot because of these new policies and we simply would not be able to afford a home if we didn't act quickly."

Bendza and his wife had been saving for several years and with the help of a friend they quickly found and bought an apartment in the north of Beijing, close to the airport.

"The facts show that our decision was a wise one. The price of our new apartment rose hugely in the space of just 20 days," he said.

"I suggest that next time the government should undertake more research into the property market. Also, consult a greater number of people from all walks of life to work out really effective policies that will benefit the majority of people and not just a small number."

A new tactic

By Peng Yining

After months of searching and then decorating, Ding Hao, a 26-year-old dancer from Hubei province, finally moved into his new home in Beijing last month. Technically speaking, the 56-square-meter loft, which cost 10.5 million yuan, is not his home but his office, because he bought a commercial, not residential, property.

Chinese law forbids the use of commercial properties - purchase of which is not constrained by the need for a local hukou and is exempt from the new regulations - as homes. However, the new rules have been criticized for being too vague and not working as planned. As a result, this "gray area" is a source of hope for those who are not qualified to own property in the capital, but still dream of doing so. There are also added costs in terms of a property management fee and shorter duration of property rights - owners of residential properties are granted 70 years, but for commercial buildings, the duration is usually 50, or sometimes even 40 years.

"But nobody really uses these places as offices. All my neighbors are doing the same thing as me," said Ding. His community, between the East Fifth and Sixth Ring Roads, doesn't look like a business district; laundries and massage parlors have opened and the streets are full of people walking their dogs or pushing baby strollers.

"You would never know that I live in a commercial building, unless you saw my property certificate which says 'commercial' instead of 'residential'," said Ding.

However, his dream of owning an apartment and settling down in the city is strong enough for him to pay the higher costs for a commercial property.

"I have a stable job and it's time to settle down. The symbol of settling down is buying your own place."

He has spent 170,000 yuan on decorating "the office", transforming it into a cozy apartment with wooden floors and crimped curtains.

"I know it's not a perfect long-term plan," he admitted. "I am thinking buying a real residence, but the new regulations just seem to make it even harder to do that."

Jiang Xueqing contributed to this story.