Can Expats Buy Real Estate?

It´s possible but you must have lived in China for one year before you can buy. The real-estate agents don´t tell you this though...

Benjamin D

What Benjamin D said is right. Also, from what I remember, a foreigner can only own one property according to a law passed near the end of last year.

Well, the Property Purchase Club for Expats has been just opened in SZ last December, for helping expats who live in SZ to find their properties; this club combines with Zhonglian real estate agent, and they have two hotline for english speaking people, any inquires for real estate in SZ, you can call them, here are the numbers: 8280 0763/8280 0967.

Good luck!

Cherry

This is the article about the club cherry is refering to.
http://www.shenzhenparty.com/content/club_aims_help_expats_own_home_2007...
[Wowzers Batman]
scott@shenzhenparty.com

Gregg Vincent

gregg@pvccards.com.hk

There is an estate agent in Shekou "Dial an Angel" owned by an expat, who has also brought property, so he can give you a good idea of the situation, their web-site is:

URL: www.shekou.biz

Good luck with the new home

The prices for nice apartments range from 20,000RMB to 30,000RMB per square meter, but they can go even higher than 30,000RMB for the best.

One thing to keep in mind is that you really are not purchasing the property, you are buying a long term lease. Yes, the long term is usually 60 years or something, but in truth you do not own the property.

You might want to consider what is the value of a 20 year old apartment building in Shenzhen. In the USA or Europe we see a home as a very long term investment, that retains or gains in value. Yes, there is a large amount of gain in new fashionable properties, but when you look at it as a long term invesment, you might want to think twice.

There are also some tax issues, but I am not sure of the details. You need to be aware of these. I think if you are buying a used apartment, that is less than 5 years old there is a fairly high tax. The Shenzhen government is doing much tax adjusting in these areas trying to control prices.

I think, but am not sure, you will need to be a legal resident with the proper visa ( I do not think an F would work) to purchase. Others can most likely better answer this.

Another option to consider, is if you are the owner or controlling owner of a Chinese corporstion (WFOE) then you can have the company purchase the property.

Good Luck!

There are lots of issues with purchasing a property in China - too many for my two fingers to type!! Thanks to Gregg for his post regarding us at Dial-an-Angel (I am the guy he mentioned).

Prices are low now as the market "hit the wall" three months ago as the central government's tightening of funds and other measures succeeded in cooling it down. The average price now is in the range of 22,000/sqm in Rose Garden - down from 26,000 last year.

Many real estate agents have gone out of business in the last three months - 20,000 agents out of work just in Shenzhen!! In the Rose Garden/Sea taste area there are 15 real estate branches that have closed.

A lot of buyers lost their deposits when the agencies closed so be VERY careful doing business with local agents - even large companies have disappeared.

I am happy to chat with you about the opportunities & the pitfalls - give me a call on 26814240.

I had a foreigner colleague who bought house in 2006, he bought a chinese name from Police bureau and then he can buy real estate with his chinese name. maybe you can try in his way. Daisy

Friend,

Do not buy, just rent! The real estate market inside Shenzhen, China is highly volatile, put simply, unstable.

Maybe in other provinces (you might be assigned or open a new office there) where they give better treatment to expats. Like Xiamen, etc.

But not Shenzhen. Please. Your investment in this property will not pay off in the future.

I have a Singaporean friend, he bought a Shenzhen in Baoan property within a property (no title but the said apartment is inside a compound that has 3 x 6 storey apartment buildings where the owner purely told him and the rest that the title will be ready when the government decides). But it was cheap, 125 SQM 4 rooms for only 300,000 fully finished and viewing the river also.

When he computed his expenses renting or staying in hotels for the past 6 years, it was a good 'risk' per his statement.

Happy hunting anyway if you will decide to buy.

Tobs

Just consider your situation here in China. If you know you are here for a long term then buy one but short term like 2-3 years like Tom said just rent. I bought a house in 2003 and cost me half a mil, now it's woth more than double. But buying now specially in a volatile realty state market might not give you any profit...just burden. I know because my neighbor is trying to sell his house. He moved out already so buyer can see it's ready to move-in but it's been 5 months now and the place is still empty. Taxes and documentations are things you have to be careful too, study it and be aware there might be hidden laws that you don't know! I am thinking of selling the house too. Interested?

Gosh....U made me scared....

Im leaving HK because after 3 years here I found Impossible to have a normal life....for someone like me House is very important but in HK is too far expansive...we are talking about 4000 min for Sm....
NOw i'm moving to SZ and I have found several house selling for 1500 Sm....I m surprised to hear 2600...seems strange.
its true the market is unstable...but where is stable....this year will be the year of instability all over the world IMHO....
I do think if you buy house not in a famous garden u still can have really a good price

thanks :)

G

I was living in Kenya and I thought about buying an apartment because it's really cheap compare with the rent. In Nairobi, half million house the rent is 4000 per month, I can cover the cost just 10 years! But in shenzhen, maybe 30-40 years now, so I sold my house 2.8million but when I bought it's 1,2million in 2003. So I don't think it's a good idea to buy house here. If it's an investment, then consider the other place...much better!

Good luck~!

Yes you can buy prpoerty here. I own an apartment 144 sq m in futian. At the the time the purchase price was 795,000 RMB including all charges. Now it is worth 1.8million RMB.
Of course my wife is Chinese so that helped alot. I also own an SUV as well and have a legal Chinese drivers licence.

It's certainly doable for foreigners to buy and I still recommend it if you plan on staying several years but as many people point out, the market could head south. That being said, we went ~ 2 years before purchasing and lost an opportunity to make about 250k US during that time period so I regret not buying earlier or upon arrival. This is not factoring in all the rent we "gave" away.

simple guidelines
Need Work Permit & appropriate visa
I think you can work around 1 year criteria
1 property per passport
30% down

Bank of China will walk you through the rest

How did he buy a Chinese name and how did this allow him to buy a property?

Thanks to everyone for your comments. They have been very helpful. If anyone hears of any recent prices at the Rose Garden, Mount Orchid Riverlet or others then please let me know so I can compare data. Also, if anyone knows of any nice appartments or villas around OCT then please let me know. Thanks!

Prices at Mount Orchird are stable now. For phase I you can find at around 28000sqm and up. For pahse II there is still a few for sale, starting at 42000.