What types of business practices are followed in the real estate business in China?
Significant progress has been made in the establishment of fair and equitable real estate market practices, but areas of concern remain. As many developers in China are first-generation businesses, market practices and quality of service vary greatly. Increased occupation costs and unprofessional services mean that real estate needs in China can often become an operating difficulty for companies, and result in a less competitive business environment.
As the demand for real estate services has increased, various government ministries have exercised greater levels of regulatory control. This level of governance has accelerated the development of market practices and has involved the Ministry of Construction, the Ministry of Land and Resources, and the Ministry of Finance. Each ministry has detailed regulations regarding licensing procedures and categories, and encompass such issues as the type of assets that can be valued, guidelines for property size and type, fee structure, and geographical considerations.
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