After 40 Years, Who Gets Your House?

In Beijing, homes are given a 70 year property right, but commercial property only gets 40 years. Mixed use property, with both commercial and residential property, only has a 40 year right to the land. With the reform and opening now headed into its 38th year, Chinese are starting to ask what happens when year 40 comes due?

Already, existing homes in falling under commercial property rules are selling at a discount to similar properties next door that have the 70 year land rights. One issue is that according to law, the 70-year right will renew at expiration, but no such provision exists for commercial property:
According to the data provided Yahao real estate brokerage firm, according to incomplete statistics, Beijing currently has more than 20 "mixed-use" items in the sale, the monthly trading volume in two to three hundred units, the market is in a stable condition. In Shanghai, Guangzhou, Chengdu, Shenyang, and many other cities, can see the shadow of such a project, which was dubbed "apartments", "Loft apartments" and in the name of foreign sales. But without exception, these "mixed-use" projects do not have a 70-year property of ordinary commercial housing.

"Our 2007 introduction of the one hundred and forty ninth Property Law stipulates that the expiration of the period of residential construction land use right, the automatic renewal; renewal after the expiry of the non-residential construction land use right period, there is no automatic renewal provision. "In real estate law firm lawyer Xu Bin Tang said.
According to statistics, a little more than 10% of national real estate construction consists of this type of housing.

The article concludes by saying not to worry and the government should fix the law in order to remove uncertainty.

iFeng: 商用地产40年后归谁:会不会被国家收回?

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