Five years into China¡¯s real estate slump, homebuyers are finally starting to return. The catch for developers: they¡¯re avoiding shiny, new apartments and concentrating on small, old ones.
Buyers in major cities are putting their money into flats that were largely built during a Soviet Union-inspired construction drive in the 1970s and 1980s. Known as laopoxiao ¡ª which translates as old, shabby and small ¡ª they tend to suffer from poor insulation and outdated plumbing.
Buyers are overlooking such flaws because the apartments are often located in attractive areas with good schools, public transportation and other amenities. That¡¯s sent values of small homes higher, at least in some cities. The average price of Shanghai apartments smaller than 70 square meters climbed 2.4% from a November low through the end of April, defying a nationwide decline in the wider market, according to research firm Proptech Innovations.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.