Shanghai’s current real estate market happens to be around 15 years old and still in its early stages when compared with the adequately developed markets, there is little organizational composition and it belies the concept of a revolutionary skyscraper littered city. With the Government of the Peoples Republic of China’s regulations changes in the late 90’s Chinese citizens were now offered the authority to choose Shanghai apartments as well as purchase their very own residential or business properties. Nevertheless there are no multi-listings yet but the technological infrastructure is still rudimentary. Under developed legal system has yet to put all the safety nets when things fail.
While Shanghai is a big city some areas of it still in the urbanization stage thus the “jungle” still covers some regions of the big settlement. Many house owners purchase their houses from the agencies around the apartment building or housing compound they have chosen and often make use of the same agent to rent it out. In the event an owner of an old building wants to rent out their house then they would in most cases place it on the books of the neighbourhood agency. The bigger organizations with offices around the city are networked with each other but the smaller ones work by themselves. Whilst there is some co-operation amongst agents it is minimal due to the fact many are skeptical to share percentages.
Landlords’ flexibility on negotiations is dependent firstly on their personal demand for return on investment (ROI). Many of the separately owned more advanced luxury properties are bought outright thus house owners can wait until there is a deal best fitting their demands.
On the other hand, houseowners that have either borrowed to purchase the house or Shanghai apartments or have to pay expensive mortgage rates are desperately in search of some roi, irrespective of how little it is.