Individuals to become real estate developers
24/1/2005 17:36
Gu Jia/Shanghai Daily news
A group of young
persons are raising funds for their own construction project, "Shanghai Jia
Yuan". They are preparing for the land purchase and building construction now,
reported today's Oriental Morning Post.
This is not the first time for
individuals to cooperate to build houses in the city since April 2003.
Zhu
Jian, one of the participants indicated that even if we fail, it would be a good
example for us.
During the ninth regular meeting for this project held in the
Raffles City yesterday, Zhu tried to clear away the doubts raised by both
authorities and experts in the real estate industry.
The project includes 300
flats, each around 100 square meters. Along with the 3 million yuan (US$362,756)
put into land bidding, the total investment will add up to 60 million yuan. Zhu
explained they would invite a third partner as the financial supervisor to
ensure the security of the funds.
Land and capital are still the two main
problems facing these young entrepreneurs. Li Zhanjun, director from the real
estate economy research center in Pudong, is not so optimistic about the success
of these young businessmen in bidding on land. However, Zhu Jian indicated that
a consulting company for development in house property would be established to
sharpen their edge of competition.
Still, several local experts on land and
real estate expressed concerns with this project for both capital security and
construction administration.
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