Forums / Property Investing / Overseas Deals / Property in Beijing

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  • Profile photo of JohnJohn
    Participant
    @jxie203gmail-com
    Join Date: 2015
    Post Count: 1

    Not sure if this is the right area to post and also sorry for the hard reading due to my 1st language is not English.

    If this post is not suitable here, please let me know and I will delete it straight away. This is not an advertisement, it is a personal problem to be solved and beneficial to others as well.

    This may be of interest to the investor who is familiar with property value growth in Beijing, shanghai and Shenzhen.

    The property price growth of the 3 above cities are just over the moon. For example, the 3 properties my sister bought in 2002 has grown in market value of big numbers over 15 years( an example , purchase price around 430K in 2002 Chinese Yuan and now worth almost 10,000,000 chinese yuan, a whopping 23 times ).
    The above figure is not anything exceptional selection, it applies to almost all properties in Beijing. Like property market in Australia, this happens regardless of all sorts of doomsayers.
    The key drivers, I believee are the following and will keep going for a long time.
    GDP growth both in China and Beijing,
    Urbanization still in the middle, millions of people flock to Beijing, Shanghai and other huge cities and it has at least another 20 years to go.
    Wages growth( I do not know others but the people I know has around 10% wage growth pa, this figure is very average.)

    Now what the local government does is to limit the number of buyers by force. At this moment, a family with Beijing permanent residence status( called HuKou) can only buy 2. It is like covering a volcano crater with a concrete. It will drive either property price or rental to sky high level.

    My parents currently have the local government permission of buying 1 more property. They do not want to buy anymore due to health reasons.
    Anyone out there interested in this ? Again it is for the people familiar with China situations.
    For people locally in Beijing, you may own it. For outsiders, it can only be investment. We do need everything legal to protect everyone involved.

    John

    PS. I want to buy myself but due to family reasons…..!

    Profile photo of jameszhaojameszhao
    Participant
    @jameszhao
    Join Date: 2011
    Post Count: 3

    I just got back last week from Shanghai after not having been there for nearly 17 years. Most of people I spoke to are skeptical of anymore growth simply because that’ll put it out of reach of the majority population.

    I’ve also noticed the government is just building for the sake of building and artificially inflating the GDP. I took a train ride to visit my aunty in Ningbo and along the way in remote areas, I see many 30 story identical apartment blocks being built 10 x 10 at a time. I just found it all too crazy. Surely you aren’t going to tell me there are 12000 families just waiting to live in the middle of nowhere. There seems to be a lot of supply, a lot of demand but the price difference between seller and buyer is so large that it boggles the mind and yet, they continue to build and advertise these prices. I should go in and ask for a 80% discount and see what happens.

    The poor real estate agents there are standing on street corners and literally following people as they walk by just to try to drum up interest.

    The place is just crazy.

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