Experts Speak Up: Public Sharing Must Not Be Abolished to Protect Ordinary People’s Rights and Interests
In a recent development, experts have emphasized the importance of not abolishing public sharing, stating that it is crucial for protecting the rights and interests of ordinary people. Furthermore, they assert that pricing according to the construction area also serves as a form of safeguarding these rights and interests.
The issue came to attention on July 13 when a woman’s purchase of two apartments, one measuring 69 square meters and the other 37 square meters, raised concerns about public sharing. A real estate consultant involved in the transaction confirmed that the sharing rate for these apartments was indeed 50%. The purchase contract revealed that Xi’an Kanghan Real Estate Co., Ltd. was the seller.
According to records from Tianyan Check, Xi’an Kanghan Real Estate Co., Ltd. was established in May 2019. Yu Kangqi serves as the legal representative, and the company has a registered capital of 10.2 million yuan. Its scope of business includes marketing planning, real estate development, and operation. Notably, it is a wholly-owned subsidiary of Rongan Real Estate. The latest annual report from 2022 shows that the company has a total of nine insured individuals. Rongan Real Estate Co., Ltd., the parent company, was founded in May 1989 and went public on A shares in August 1993 with a registered capital of approximately 3.184 billion yuan. It directly holds over 120 companies, although more than half of them have been cancelled.
Experts within the industry argue that the abolition of the “shared area” should not be rushed, as it may potentially infringe on the rights and interests of buyers. From the perspective of home buyers, a smaller “shared area” could lead to issues with supporting facilities such as narrow elevator rooms, multiple households sharing one elevator, and reduced public activity areas. Consequently, the quality and comfort of living could be compromised.
In response to these concerns, Yu Xiaofen, vice president of the China Institute of Real Estate Appraisers and Real Estate Brokers, emphasized that valuing or confirming property rights based on the building area is a means of protecting the rights and interests of ordinary people. As the public areas also belong to ordinary people, this approach is considered reasonable.
On March 1, the “General Code for Civil Buildings” issued by the Ministry of Housing and Urban-Rural Development officially took effect. According to Article 3.1.1 of the “Specifications,” the building area should be calculated based on the horizontal projected area enclosed by the outer surface of the outer enclosure structure on each level of the building. This includes not only the surrounding building walls but also external wall plastering, decorative surfaces, decorative curtain walls, and other enclosures. Many netizens believe that the implementation of these new regulations will result in an increased building area (composed of shared area and apartment area) compared to the period when the old regulations were in place. Consequently, this could lead to an increase in the shared area of houses purchased at the same price and a decrease in the rate of home buyers.
In terms of definition, common share refers to the shared construction area, which comprises the common parts of the entire building shared by all property owners. This includes elevator shafts, pipe wells, stairwells, garbage lanes, power transformer rooms, equipment rooms, public halls, corridors, on-duty guardhouses, as well as the building area serving public buildings and management rooms for the entire building. The calculation is based on the horizontal projected area.
The concept of public sharing was initially introduced from Hong Kong to mainland China and was later clearly stipulated by the state in 1995 through the “Commercial Housing Sales Management Measures.” Over more than two decades of implementation, public sharing has gradually revealed numerous problems within the real estate industry.
In conclusion, the experts’ assertion regarding the protection of ordinary people’s rights and interests through the preservation of public sharing and pricing based on the construction area reflects the need to prioritize the well-being of home buyers and the quality of living conditions. As such, any future changes in regulations should carefully consider the potential impact on these crucial factors.