Here in the city I am in, there is no problem at all selling those houses, and in other bigger cities it is similar. More and more people move to the cities if they can afford it. Better schools, better hospitals, and you Hukou (you "citizen registration card") it will not say "rural resident" anymore; to be a "city resident" is looks much better.
Buyers can be reasonably sure that those new areas will be developed a few years later.
However, for some 3 years now, the state and central gov't constantly come up with new laws to avoid that people buy many apartments and leave them empty. The new property tax in selected cities is one example. An increase in required down payment capital is another (http://usa.chinadaily.com.cn/china/2011-07/07/content_128581...). In the city I am in, you only get a bank credit for your first apartment now, to buy further apartments, you have to finance them yourself.
Buying an apartment is the safest form of investment in a country where the health system is only just being built up, and the retirement system is not widely trusted (yet). It is more the thing of the new middle class. The really rich people will try to get part of their money out of the country as soon as they can. You never know how stable the country will be tomorrow, is usually the reasoning.
Buyers can be reasonably sure that those new areas will be developed a few years later.
However, for some 3 years now, the state and central gov't constantly come up with new laws to avoid that people buy many apartments and leave them empty. The new property tax in selected cities is one example. An increase in required down payment capital is another (http://usa.chinadaily.com.cn/china/2011-07/07/content_128581...). In the city I am in, you only get a bank credit for your first apartment now, to buy further apartments, you have to finance them yourself.
Buying an apartment is the safest form of investment in a country where the health system is only just being built up, and the retirement system is not widely trusted (yet). It is more the thing of the new middle class. The really rich people will try to get part of their money out of the country as soon as they can. You never know how stable the country will be tomorrow, is usually the reasoning.