Shanghai’s modern housing market is only about 16 years old so still in its infancy as compared to the adequately developed nations, there is little organizational composition so it belies the view of a modern skyscraper littered city. With the Government of the Peoples Republic of China’s policy changes in the late 90’s Chinese nationals were now presented with the authority to select and purchase their very own domestic or industrial properties. Nevertheless there are no multi-listings yet and the technological infrastructure is still essential. Under developed legal system has yet to set all the safety nets once things break down.
Although Shanghai is an enormous metropolis a few areas of it still in the urbanization stage so the “jungle” still covers some parts of the gigantic settlement. Most house owners get their Shanghai apartments from the agents close to the apartment building or villa compound they have chosen and tend to use the same broker to rent it out. If an owner of an older house wants to rent out their house then they can in most cases put it on the books of the neighbourhood agent. The bigger groups with branches around town are networked together but the smaller ones work by themselves. Whilst there exists some co-operation among agencies it is limited due to the fact most are skeptical to share commissions.
Landlords’ flexibility on negotiations depends firstly on their individual need for return on investment (ROI). Many of the individually owned higher end Shanghai apartments are bought outright therefore house owners can wait until there is an offer best matching their requirements.
Alternatively, landlords who have either borrowed to purchase the Shanghai apartment or need to pay costly mortgage rates are anxiously looking for some revenue, regardless of how modest it is.