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ISSUE 96 - Apr 2012
 
 
What are your expectations for the gross gaming revenue growth of Macau’s gaming industry in 2012?
Decline
Growth above 20 percent
Growth from 10 to 20 percent
Stagnation
 
 

Wild wild west

Issue 4 (8/2004)
Posted: 1/5/2008 12:00:00 AM
Rating:     60% (1 votes)
  

Adopting a model used in its rich coastal regions, China is working to develop its poor western areas, but the development push is triggering a familiar struggle over land rights.
Over the past decade, China's booming real estate market has been an engine of growth bringing spectacular wealth to well-connected developers and private home ownership to people once nurtured on government-owned housing.
Now the real estate boom is spreading inland and, despite a landmark property law introduced last year, residents are facing what they say are injustices stemming from collusion between developers and local governments.
The law, for the first time in communist China's history, made “private property” legal, giving some hope to homeowners and farmers who have for years battled against government eviction orders and low compensation.
But in a suburb of Sichuan's provincial capital of Chengdu in southwest China, about 50 families at an old closed-down plastic factory are refusing to move out of the homes they have lived in for decades.
It is a story being repeated across the fast-changing western areas, echoing problems that marginalised Chinese on the more developed east coast have endured for years and which have been one of the major causes of social unrest in China.
On a recent visit to the Chengdu suburb, banners and slogans hung from the buildings built during the backward years of Chinese communism in the early 1970s, saying, “we want transparency, justice and impartiality.”
“I have spent dozens of years working here and now I am only asking for a simple place to live,” said a man, 52, a resident in Wenjiang suburb who is refusing to move.
“I have worked all my life, but now I don't know where I am going to live. A new apartment will cost me a huge amount of money.”
According to the families, the developers are offering 8,000 yuan (US$1,140) in compensation to move out, far from enough cash to purchase another house.
“For this amount of money you could just about buy enough space to put our bed,” said one woman, who cited the going price of an apartment in Chengdu at about 3,000 yuan per square metre (10.76 square feet).
The workers also denounced what they viewed to be the collusion between the government land bureaus and the real estate industry, something that local officials adamantly deny.
“We have tried to play a role as mediators,” said Wang Qingmei, an official at Wenjiang's economic bureau.
“The developer has no links to the local government, there is no corruption involved. On the contrary, we have offered preferential policies so that the developers can offer better compensation.”
The developers have “given a lot”, Wang said, while emphasising that most of the 126 workers to be moved out have accepted the offer.
Still others are wary of the intentions of the government because, despite the new property law, China's constitution continues to maintain that “all land belongs to the state”.
While the actual apartment or building may come under private ownership, the land continues to be owned by the state. It is a principle that allows local officials tremendous powers over land-use rights.
And while the Wenjiang authorities insist their hands are clean, Chinese authorities admit corruption over land rights is a huge problem nationwide.
The official Xinhua news agency this week announced that authorities had uncovered 31,700 cases of illegal land grabs in a four-month national crackdown that began last September.
In Chengdu, a city of 11 million, government efforts to develop China's western regions through economic growth are fully apparent in the scores of real estate projects in the city centre and the suburbs.
The projects in question are clearly aimed at cashing in on the growing Chinese dream of home ownership, with advertisements promoting properties with names like “Toronto Castle” and “California Villa”.
“It was only several years ago that this was all farm land, the good earth,” said Wang Dongruo, 64, who was born in Wenjiang.
“Now houses here cost 3.6 million yuan (US$514,000),” he said with a chuckle of disbelief as he looked over at a luxury home replete with privately employed uniformed guards.



Headlines

Facts on Figure April 2010

Home truths

A comprehensive study into Macau's property market says flexibility and caution should be the watchwords as officials shape the future of public and private housing. But most of all, home ownership should be promoted.

Lap of luxury

The Waterside in One Central on the edge of Nam Van Lake is the jewel in the crown of Macau Property Opportunities Funds portfolio. Leasing has just started and prospects are looking good .

Winning bet

A couple of hiccups aside, the Macau Property Opportunities Fund has sailed through the global financial crisis, seeing its asset value increase. The company believes its investment choices have left them well positioned. A Hong Kong listing would make sense, they say, but investors will have the final say.
Other Macau Latest News

More than just gaming

MGM is still waiting for Cotai approval, but Grant Bowie reiterates that it will go beyond just gaming

Okada on ‘fishing expedition’

Wynn’s lawyers accuse the Japanese businessman of trying to find improper acts, which they say never happened

Galaxy to sponsor volleyball tournament

The gaming operator is again backing the Macau stage of the FIVB Volleyball World Grand Prix

New border crossing could drive up shop prices

Property experts say prices in Ilha Verde area could go up 10-fold

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