Shanghai’s current property market is merely around 12 years old and still in its infancy compared to the fully developed markets, there exists minimal organizational structure and it belies the view of a revolutionary skyscraper littered city. With the Government of the Peoples Republic of China’s policy changes in the late 90’s Chinese residents were now presented with the authority to pick as well as acquire their own residential or commercial Shanghai housing. Nevertheless there are no multi-listings yet and the technological infrastructure is still elemental. Under developed legal system has yet to put all the safety nets once things go wrong.
Although Shanghai is an enormous town some areas of it still in the urbanization process so the “jungle” still covers small areas of the massive settlement. Several owners get their properties from the agents near the apartment building or villa compound they have chosen and often make use of the same agent to rent it out. If an owner of an older house wants to rent out their house then they can usually place it on the books of the neighbourhood agency. The bigger agencies with branches around town are networked together but the smaller ones work by themselves. Although there is a bit of co-operation amongst agents it is minimal mainly because the majority are unwilling to share commission rates.
Landlords’ flexibility on negotiations relies upon firstly on their individual need for return on investment (ROI). Many of the separately owned higher end luxury Shanghai housing properties are bought outright thus landlords can wait until there is an offer best matching their requirements.
However, houseowners who have either borrowed to purchase the house or have to pay pricey loan rates are anxiously in search of some return on investment, no matter how modest it might be.