What kinds of obstacles need to be overcome to establish standard market practices in China?
Standard market practices need to be established for real estate activities. For example, there is no single standard for floor area measurement. This creates confusion, uncertainty, and opportunities for abuse; such as the manipulation of "public space" measurements even after property contracts have been signed. Furthermore, the measurement systems used by government bureaus are not consistent with international standards. Standardizing and adopting relevant international systems will introduce a degree of clarity and certainty into the market.
Currently, there are several professional associations for real estate services. The leadership and services provided by these organizations and their interrelationship are unclear. While this mirrors the involvement of several government ministries in the sector, the establishment of a single association may greatly simplify the management of real estate issues, and promote greater self-regulation within the industry. In addition, such a body could potentially serve as an independent and expert arbiter in real estate dispute resolution.