Yanlord Gardens, located in Lujiazui Finance and Trade Zone of Pudong Shanghai, is currently one of 30 high-end international residential communities.

Yanlord Gardens is a huge complex with a high-end living in views from the apartments, interior decoration and furnishings. Facing the historic buildings on the West Bund across Huangpu River, Yanlord Gardens has 3 very distinct phases and they differ greatly, especially between 1 and 3 as there is an 8 year gap. A lot of things happen in Shanghai in 8 years that don't happen so much in the west.

Yanlord Garden 仁恒滨江园

Lease prices for middle- and high-end apartments and houses increased more than 20 percent over last year.

Zhang Haitao, manager of the leasing department of Palm Springs International, said the monthly rent for two-bedroom units between 130sqm and 140sqm is between 12,000 and 14,000 yuan this year, up from about 10,000 yuan in 2009.

"The hike is due to the government's policy adjustment on the house purchasing market," he said.

"Since the home prices went up, more potential buyers thus to renting; it's the case with about 30 percent of our current clients."

Palm Springs, located south of Chaoyang Park, was built beginning in 2002. More than 40 percent of its residents are foreigners.

"During the last several years only in 2009 did the prices not rise," he said. "From my point of view it has risen to a certain extent and there isn't much room for more hikes."

China real estate regulation is actually a necessary part of market during the process of economic development. In the process of urbanization, the rising of property prices is inevitable, because the increasing demand drivens it. The boom of China real estate has some negative effects on macro economy, so real estate needs to slow down its pace before the possible inflation. In order to prevent that all the chinese people roll in property market, real estate market needs to obey the requirements of structural transformation of the economy.

The price has to go down to some degree when time needs, so as to make common people calm down and back to down-to-earth work. After China's urbanization rate is up to 80% and more, real estate market also needs to be regulated. The aim of regulation is to maintain the stability of China real estate market. If it never appears the burst of property bubble, the stability of property market will generate great benefit to China macro economy.

POST BY : [JOANNA REAL ESTATE](http://www.joannarealestate.com.cn)

 Yesterday, Mr. Wang Yulin, vice director in policy research center of house construction, said at the 2010 National Real Estate Seminar held by Beijing Association of Industry and Commerce that although on-going real estate market regulation had accomplished some achievements, this round of regulation would not give up halfway.

 This round of property market regulation has been lasting for one and a half months. Mr. Wang said that the regulation had noticeable achievements. Firstly, the house prices stop rising. The datas from State Statistics Bureau show that the average house prices of 70 cities in China rose slightly in May 2010, the Central than the 0.2 percent increase, compared to the April of 2010 rising speed fell 1.2 percent. What's more, among first-tier cities of China, such as Beijing and Shanghai, the property market has a very strong atmosphere of wait-and-see.

According to the data from EhomeDay,Orchid Garden, Shanghai house rental index in May is 1221, up 5 points from the previous month and the Central than the 0.41 percent increase. High-end rental market increases stably while low-end rental market goes up noticeably. I think that there are two main reasons for robust rental market.

★ To rent or to sell, that is a question

As the national real estate regulatory policy is likely to have serious effects on sales of both new and secondary houses, the number of Shanghai houses for rent has increased by 15% to 20% and continue rising. Many landlords who planed to sell their houses a few months ago, now change their mind to rent their houses. Previously, some landlords stated clearly to our real estate agency that their houses are only for purchasing, not for rent. But now, they decide to rent their house and it is OK for both rent and sell. In the meantime, those potential house buyers are not in a hurry to buy house, as they believe the prices should be down to a lower level. Therefore, for those buyers, renting a house is, now, their primary choice.

★ Shanghai Expo Motivates Rental Market

Shanghai, where the 2010 World Expo is under way, attracts a great number of short-term tenants. It is said that there have been 10 millions of tourists coming to visit Shanghai Expo until now. The organizer predicts that there will be over 70 millions of tourists for Shanghai Expo. Among them, about 3.5 millions of visitors will be expats. It has certainly stimulated the short-term rental market in Shanghai and pushed the average rents up 15% to 20%.

It is said that Shanghai government has prepared two sets of plans on Shanghai property tax and reported it to the central government. Roughly speaking, in plan A the government will not levy the property tax on those houses that you buy before the debut of the property tax policy, while plan B stresses that no matter your house is bought before the debut of the property policy or after it, the tax will be collected except that you have only one house property or your second house is less than 70 aquare meters in terms of per capita living space.

If the government adopts the plan B,Chateau Regalia, those landlords who own three or more house properties will consider selling some of their houses.

Actually, the tendency of Shanghai real estate market is currently based on Shanghai property tax that has been said to come out for a few weeks. Shanghai just reported two plans on property tax to the central government – Plan A is a moderate one while Plan B is much tougher.

Plan A

The property tax will not be imposed on those house properties that are purchased before the debut of the property tax policy, no matter you have three, four or even more houses. But after the debut time, if you buy the third house or the second one of which per capita living space is more than 70 squre meters, the property tax will effect on your third or second big house.

In the event that the national new policies depresses the sale of property market, many house buyers choose waiting and seeing, and thus continue to rent houses to live in. It stimulates the housing lease peak to come a bit earlier than past years. Since May 2010, the rental market has increased in terms of both supply and demand. The rental cost also increases, keeping pace with the number of tenants.

In May of this year, the Shanghai rental index is 1221, the Central than 0.41 percent increase. As the time tells, if real estate regulatory policies continue and effect, the rental market will keep rising and turn out to be a highlight in the property market. While landlords are waiting for whether the property tax and other tougher regulatory policies will come out, the degree of willingness to sell their properties becomes weaker. They are more willing to rent their house instead of selling it. The houses for rent in listing have increased over 1 percent since the May, which stimulates the whole rental market. And short-term tenants for Expo tour also help increasing the demand market for rent.

High-end Rental Price Tends To Go Up

In May, Shanghai high-end rental price was up, the Central than the 0.08 percent increase. The rental prices in all 12 administrative districts rose across the whole city. The areas such like East Nanjing Road, Jin’an Temple and Xujiahui perform very actively in house rent. Many buyer prefer to rent a house for transition. The above three areas increased 0.15%, 0.13% and 0.11% respectively in terms of rental.

Police in Shanghai are investigating the first fake Expo 2010 Shanghai ticket discovered on Wednesday, causing Expo organizers to remind the public to purchase tickets only from authorized dealers.

According to the Bureau of Shanghai World Expo Coordination, the first bogus Expo ticket was found on May 26, while the practice of collecting used tickets and reselling them has been reported since the fair's opening on May 1.

The police have vowed to combat the counterfeiting. Meanwhile, the public is advised to get their tickets from authorized dealers including designated agencies, selected tourism agencies and on-site box offices at the Expo Garden.

The public can identify the fake passes from feeling the surface and comparing the colors on the bottom edges.