Local Governments Against Central Real Estate Database
British Reuters reported that in 2010, the CCP Central
government planned to start a nationwide real estate database
which would allow users to check how much real estate
a person owns and other housing details.
But the plan met with opposition from local governments.
Mainland scholars analyze that the database creation is more
out of a sense of forced obligation due to
he anti-corruption campaigns.
It’s also a solution for the increasingly serious
But, the local government doesn’t want the central
government to intervene in local land finance.
Officials have concerns that their property
will also be exposed.
October 2, Reuters, quoting expert analysis, reported that
the database is not the only way to control the housing
bubble, but it is the key to force the local corrupt officials
to confess how they buy property using illicit income.
Hubei writer Ruan Yunhua: “The officials’ assets have
to be public once the database is established.
It’s the way to force them to make assets public
from a data perspective.
They wouldn’t be fooled and refuse to cooperate
with this policy.
They intended to hide their assets from citizens,
but it is in vain."
Domain experts said officials from 40 cities were listed
in the proposal as refusing to sign
until the Housing Department agreed not
to publicize their information.
The second phase of the Database plan should be completed
in June which includes 500 more cities;
but there are no results so far.
Real estate data is favorable to the real estate market,
but a threat to the officials who try to hide several houses.
In recent months, many Mainland officials have been
They won’t be able to afford several pieces of real estate
as civil servants.
The famous “room uncle" and “room sister” have become
the target of public anger.
In one particularly high-profile case, a Guangzhou city
Administrator, Cai Bin, was dismissed in October
due to owning more than 20 houses.
His monthly salary is only 10 thousand RMB.
Data authenticity is questioned even though the database
has been established.
Ruan Yunhua said some senior officials can have several
identity cards, so the final registration
of real estate information is not necessarily factual.
Ruan Yunhua: “The database establishment proposal
by the Government is to cater to people.
But the proposal hasn’t been done or the progression is as slow,
as the government’s anti-corruption every day or public official’s
assets every day.
The unconstructed system cannot ease the people’s urgent
psychological attention, but only gains more time
for themselves to make it legal."
Xuchang real estate investment adviser Zheng Zhiyao
thinks that the local government’s resistance to the database
establishment is mainly because it is reluctant to let
the central government intervene in the local land finance.
They have concerns that the central government bursting
the realestate bubble will impact local economic development.
Xuchang City real estate investment adviser Zheng Zhiyao:
“No local governments want to see their real estate crash,
suspended construction projects, or even a ghost town.
It will result in more pressure on the local government
and bad debts to local banks.
Because real estate is not isolated, it has land, building
materials, employment, taxation behind which are related
to government finance and tax income."
Zheng Zhiyao revealed that local officials and real estate
developers use fraudulent means to increase
the real estate bubble to line their own pockets.
Zheng Zhiyao: “The finished houses are not all sold
to the customers.
One part is sold to customers; another part is mortgaged
to the bank; the internal staff will buy the rest disguised
as false buyers.
It actually means the real estate companies buy their own
house, mortgage to the bank, go to the loans,
and then proceed to the next real estate operation."
Zheng Zhiyao said that unhealthy real estate and the real
estate bubble refer to this part—complete idle funds.
The resulting foam is to increase house prices and pass
the risk to the banks and markets.
The China housing census of 1986 is the only
The economic census in 2010 did not include
the housing census.
This year’s economic census will not include
the housing census either.
Many cities also lack historic housing census data.