“Renovation costs are very high, so it makes no sense to rent if you are seeking capital appreciation,” she explains via e-mail. “Remember that apartments here are sold bare, without flooring, ceilings, lighting fixtures or wall tiles. They all need to be installed, adding at least 20 percent to the cost [and] people expect to ... custom fit the unit.”
This means that even in successful towns like Spring Legend—where a unit costs an average of 16,000 RMB (about $2,500) per square meter, roughly a third the cost of a typical apartment in central Beijing—the streets and houses remain lifeless. The owners, says Bianca Bosker, author of Original Copies: Architectural Mimicry in Contemporary China , are “dreaming of what they’ll do with the riches they imagine they’ll get when they one day sell them.” The likely answer? Buy more property. However, “Given how many people have hatched the same ‘get rich quick’ real-estate idea, and how many of China’s gated communities stand empty, betting on real estate looks increasingly risky.”
Spring Legend is hardly the only city of its kind. There's also Thames Town, outside Shanghai, which is a $300 million British-style residential complex developed by since-incarcerated Shanghai Communist Party boss Chen Liangyu. And north of Beijing in Hebei Province is Jackson Hole, a wind-swept Wild West replica featuring neighborhoods called Moose Creek, Route 66, and Aspen Land. When developers previewed Jackson Hole in 2003, buyer interest was intense. The homes “sold out in record time,” says Oregon-based designer Allison Smith, who helped create the settlement. Early investors who purchased an “American villa” for around a quarter-million dollars in 2006 have seen their dreams “triple in value,” she estimates.
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