The housing market in China has become highly regulated as the government acted to cool overheating. Anyone thinking of buying and selling again in a short period is likely to face penalty taxes.
The Shanghai market, after several years of appreciation at around 30% per annum, appears to be in decline now. So there may be good buying opportunities in the future. The values of my apartments Nanjing have still kept slightly ahead of inflation over the past year and a half, since regulations slowed the market.
It seems that many people are sitting and waiting to see what the government will do with regulation. The purchase price of a property in China effectively includes 30 to 40 years of council rates paid up front, which provide a huge temptation for government departments to spend. There has been talk for some time now of changing the pricing structure so that the “rates” component is paid of over the term of the land usage title. There is an article out on this issue today:
http://www.chinadaily.com.cn/english/doc/2006-03/17/content_542190.htm
Whilst it is still pretty easy to generate positive rental returns, the percentages are not as good as a few years ago. Nevertheless, based on numbers the market is more attractive that Hong Kong.
Regards,
Ian. [strum]How is property management in Shanghai nowadays?
I dropped by at one of Century21 offices, and a few REA there, in Sept 2004. To my suprise they didn’t have property management service?Cheers,
Property Management! What’s that?
The agents I have dealt with in China only provide an introduction service. I have a friend who manages my properties for me.
If you want someone to look after your property for you, you might consider investing in a serviced apartment which will let out your property short term – for a fee of course.
Hi Ian,
Wouldn’t it be inconvenience to invest in China, if someone doesn’t have a friend or relative there.
And By the way, what are the conditions for a foreigner to invest in the mainland?thanks,
Originally posted by learn&share:Hi Ian,
Wouldn’t it be inconvenience to invest in China, if someone doesn’t have a friend or relative there.
And By the way, what are the conditions for a foreigner to invest in the mainland?thanks,
I wouldn’t suggest buying in China unless you were able to keep check on things yourself. I’ve been working in China for some years now, so it’s not a problem. Taking profits is also a problem as the currency is not yet fully convertable, although it is likely to substantially appreciate.
The market is an intersting one to watch. It’s also a lot of fun setting up and renovating apartments where the cost of decorating is relatively cheap and so many products are available.
hello from local shanghainese:)
hi
lots of riches of china are sending there kids to us, canada, oz, nz, the western countries so that they can transfer their money to overseas because they saw it’s not a good thing to hold realestate forever in china because of the changing policy and big gap between rich and poor.
i also wish can settle down in oz and be a chef and spend my life easily but not be in such a big compitition with 1300000000 ppl in mainland. despite the gvnmnt prblms.
cheers!
wonder if i should buy a property for live as soon as i arrive oz??? u ‘ve got any suggestion?
g’day mates!
jdshcn
hi all
investing in china is not a specialist thing to do what it is
is to understand the market
the market that is aking off and will take off is the comm, shoping and hotel area inc serviced appartments and using unlisted property trust and term deposits here are the security that the money stays here but you equity lend on a product in china.
as for the chinese they can invest here and the money stays here the lease and rental is outside of china and there is no problem from a currency point of view.
the goverment is cooling the cities but not the out lying areas and these are where the real money is made.
hope you all wellhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
