A shanty-town house located at 22 Lingyin Lu, in the vicinity of Ninghai Lu in Nanjing, has been auctioned off for an incredible ￥170,000 per square metre (sqm); all because it’s near a decent school.
Chinese people go to extraordinary lengths to make sure their children receive the best education they can possibly manage. Couple this with the fact that public schools admit only children living in the immediate vicinity and the surge of property prices in China of late is succinctly explained.
Langya Lu Elementary school and Nanjing No. 29 Middle School both rank high as schools in Nanjing. Advertised as a “double school district” house, the owner of the house confidently asked for a high price upon auction.
Thus, the 13.2 sqm of shanty house, built in the 1980s, soared to nearly ￥170,000 per sqm in one afternoon auction, Chinanews Nanjing reported on June 11. Dubbed a “luxury house” in a double school district, the final bid came in at more than ￥2.2 million.
The narrow space, with its dilapidated and shaky roof, mouldy walls, plus a dirty kitchen and toilet, occupied by only a bed and a wooden table, was found to actually be the back of an old building dating from the Republic of China, with a communal courtyard used by several households.
Gulou District has always been one of the most concentrated areas for high-quality education resources in Nanjing, making it a highly preferred area for parents. Once the auction of the shanty-town house was advertised, at least ten people hurried to visit the location and see the house.
In May 2019, the average price of housing in 30 areas well known for their schools in Nanjing was ￥49,504 per sqm, among which, the area around Lhasa Lu Primary School is the most expensive, with an average price of ￥86,500 per sqm. It was the tiny size of the house that made the total asking price half those of other properties in the area which ignited the public interest.
Although the owner of the house was not on site, neighbours confirmed to reporters that the apartment was actually an extension of the old Republican-era villa. As such, those living on site are only in possession of the “Nanjing Public Housing Rental Contract”. The legitimacy of the sale is being questioned at present.
