Category Archives: Housing

A Brief Guidance for Foreigners to Buy or Rent an Apartment in Shanghai

Renting an apartment is the widest choice for foreigners who have just loaded in China. For foreigners, you just need to show your identity certification, enjoying the same policies with Chinese people. If you are just arrived, and do not know anyone or speak Chinese, the fastest way to find an apartment is to check the websites in English language.

Recommendable websites:
http://enjoyshanghai.com/property/shared/
http://www.joannarealestate.com.cn/
http://shanghai.hihomechina.com/

If you have some Chinese friends who can help you, you can also check some websites in Mandarin, which provide more choices for you.

Recommendable websites:
http://shanghai.baixing.com/
http://zu.sh.soufun.com/
http://sh.zu.anjuke.com/fangyuan/

You can also find an agency if you have already decided where to live. You just need to tell them 6001877_779957the characteristics you want, and remember to specify your budget. Don’t forget to bargain the price. This is widely accepted in China and usually you will get some small discount (within 1% and 10% according to your bargain skills).

In Shanghai, you should pay the rent monthly or, at worst, every two months. And you should pay a security deposit. Remember that the landlord may ask you for a two or three months rent deposit. However, you shouldn’t accept to pay an amount of money higher than one month of rent as a deposit.

There are some expenses beside the monthly rent you should bear, the electricity, water, gas and internet bills.

After finding an appropriate apartment, signing a lease contract is crucial.
Some necessary parts on a lease contract (the contract should be in English, better in English and Chinese):
(1) The address of the apartment
(2) The name of the landlord
(3) The renting fee, deposit fee and renting scheduling
(4) The landlord’s and your responsibilities
(5) The consequence of default

With more and more foreigners moving to Shanghai, they are not just satisfied with renting a house, they want to own the property. Although they share the same policies with natives, there are some particularities that need to be mentioned:

1. Are you qualified to buy a house?

According to the Opinions on Regulating the Access to and Administration of Foreign Investment in 20看房归来_副本the Real Estate Market issued in 2006, foreigners can only buy one property in China. Also, keep in mind that you must live in the property you purchase. Please note that you are allowed to buy residential property, commercial properties are forbidden, unless you incorporate a company in China.
(1) You must be here for 12 months first-a work residency test is applied.
(2) Do not own a house property in China before.

Jing An, Xuhui, Baoshan and Pudong districts have banned second home buying to foreigners and overseas Chinese. Banks also restricted lending to buyers of third homes by increasing down payments to 50 per cent.

Property developers are not let off the hook either, they have to pay taxes of 5% on the selling price of residential buildings that are more than twice the average price from the previous year in the same area. This was imposed in 2010.

You are allowed to get a mortgage loan, but you need at least 30% cash deposit although some banks have verbally told us they require at the time of writing, 35% or even 40%.

2. Necessary Materials:

(1) Proof that you have been working or studying in China for at least 1 year- Labor contract or visa

(2)New commercial housing
(a) Identity Certification: Passport and Residence Permit for Foreigners/ Chinese version of passport and copies,.LV-pase-3_副本
(b) Examined by Shanghai Foreign Affairs Office
(c)Dealing with the Real Estate Transaction

(3)Second-hand House
(a) Notarized Sales Contract
(b) Examined by Shanghai Foreign Affairs Office
(c) housing assessment report
(d) real surveying and mapping certificate

(4) A Chinese name: Foreigners buying property in China are required to have a Chinese name which will appear on your Real Estate Ownership Certificate together with your original name.

(5)Marriage Certificate(If not, Single Status Certificate is requisite.)

Of course, finding a real estate agent will facilitate your transaction in terms of locating appropriate target houses, preparation of transaction documents and going through government filling procedures.

Some recommendable websites:
http://zu.sh.soufun.com/

Convenience is the only thing you should consider in finding your ideal apartment, housing price is 20090613_093407(2)also an important factor. According to a newly report on Soufang.com, Jinan, Huangpu and Luwan Districts are leading the price, almost 40000rmb/㎡, Changning and Xuhui Districts follow closely, from 33000 to 37000rmb㎡, Yangpu, Hongkou, Pudong and Putuo Districts shares the price from 26000-30000㎡, the price in Minghang and Baosahn Districts is quite reasonable, around 20000rmb/㎡, Chongming, Fengxian and Jinshan Districts is the lowest, about 10000rmb/㎡.

Notice: The sales contract needs to be notarized.

 

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The Situation of House and Land Prices Soars in Shanghai Free Trade Zone(FTZ)

Establishment of FTZ

Established on September 29, 2013, Shanghai Free Trade Zone is the first free-trade zone launched by the Chinese government. It covers an area of over 29 km2, including four existing bonded zones —Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan 00123f55b17b138f811c09Free Trade Port Area and Pudong Airport Comprehensive Free Trade zone. As a testing ground , there are many economic reforms ,video game consoles will be allowed in this zone.

The Free Trade Zone will permit yuan convertibility and unrestricted foreign currency exchange, and a tax-free period of 10 years for the businesses in the area. Although it was initially reported that the Free Trade Zone will also have unrestricted access to the internet (with bans on sites such as Facebook lifted), the official Xinhua News Agency has stated that Internet restrictions would not be lifted.The Free Trade Zone will also be the first area on mainland China to allow access to politically sensitive websites (such as Facebook, Twitter, and the New York Times)

Soaring price of House and Land

The establishment of FTZ motivated the real estate market, bringing it to prosperity again, the transaction volumes in those neighborhoods were up 280.5 percent month-on-month, the price of land and house rent have obviously increased in this area.

The FTZ is attracting investors into residential property in adjacent areas. Pudong Chuansha, Waigaoqiao, Zhuqiao and Lingang New City are four such areas, where housing prices have risen in recent months by some 20 percent.

 According to Chinanews, the Shanghai FTZ will drive up the city’s housing prices, in September, average home prices in Shanghai rose 20.4 percent from the same period of last year, the National Bureau of Statistics said.

“Neighboring land prices will definitely go up, just like what happened with the Lujiazui Finance and Trade Zone,” said Xie Chen, research director of CBRE Shanghai.

 Besides the soaring prices of housing rent and apartments, the land of this area are at their fastest pace too. “Neighboring land prices will definitely go up, just like what happened with the Lujiazui Finance and trade Zone,” said Xie Chen, research director of CBRE Shanghai.1372076613-2804859149

According to the report of China Economic Net, the first piece of land located in this zone was sold for 230 million yuan ($37.8million) on Wednesday, 91.67 percent above its starting price of 120 million yuan.

Factors of Soaring Price

First of all, with many major industries of logistics, trade and finance, the requirements for lands are increasing, improving the estate development, which needs vast lands for industry parks.

Secondly, the entrances of enterprises bring abundant population at the same time, and the demands for housing greatly increased. The desperately demands for land and apartments cause the sharp rise of prices. Thirdly, the welfare policy, including the marketization of RMB interest rate and the opening up of financial industry, attracts many investors in FTZ. And this perfected the environment of estate market, more and more investments prompted the impurity of the price.

Besides, the rise of huge land-transferring fees are still has its strong impetus. Soaring prices and growing demand have also driven a jump in the number of people putting their homes on the market. The speculation from the media also pushes the big jump of prices.

Influences of Soaring Price

The soaring price of land and housing rent bring many effects for both individuals and practitioners in estate market as well as the economy in FTZ.

For individuals, it has two sides. The good one is that as an estate speculator, it is a chance. The house property you owned will definitely rise. However, if you are trying to buy or even rent an apartment in this area , then the soaring price may block your way to buying your dream houses.

For practitioners in estate market, it is absolutely their dream days. The soaring of land and 12629653768997243500housing means the desire from the public, which will motivate the sales of apartments and housing rent, bringing them lots of benefits. But when the fervor disappears, the rapid growth of price will block the development of estate market in some points as the market has saturated.

For the economy in FTZ, the soaring price of land and housing is unquestionably a success. This is a proof that the establishment of FTZ really works, the increase of price can drive the development of other industries in this area, and then economy will be improved in some degrees.

Future Trend in Soaring Price

In the future, the price of land and housing in FTC will be on the uptrend channel. For instance, Lingang New City, which is included in the Yangshan Free Trade Port Area, saw its average home prices rise 22.3 percent year-on-year to 11,536 yuan per sq m, according to data collected by Sohu Focus, a real estate website.

In the secondary market, average prices rose 10 percent for apartments near the Waigaoqiao area one week after the State Council – China’s cabinet – approved the free trade zone project in late imagesAugust, according to Shanghai Centaline Property Consultants.

According to a report on People’s Daily online, the average housing price will grow 50 percent, but with time flies, the investment fever tends to be insipid, the price may increase 30 percent in the following three years, which is still higher than other areas in Shanghai.

 

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The Housing Situation in Shanghai

There are lots of people who want to live in Shanghai generally care where they can live, This is also the most critical issues to expats who are willing to live in Shanghai. Fortunately, Shanghai offers a array of alternatives for incoming foreigners, whether you are searching for a unique apartment or an old dwelling from the local family. The following are some options for people who are looking for a place to live in Shanghai.

Independent Villas

This kind of house is commonly named houses while in the West, these may possibly take the kind of standalone (independent units) or semi-detached. Typically townhouses or row homes are often found in many of the exact same developments, providing access on the very same facilities but devoid of the size or cost of an independent villa.There is certainly constrained supply downtown, usually over the little side and aging. The price of this type of house is generally high, you need have enough money to buy or rent.

Villas in Regional Compounds

Expats who opt for to live in nearby compounds typically pick high-end area enclaves, normally inside the western suburbs. These are also standalone or semi-detached houses with gardens, but services will not be ordinarily offered.

Historic Housing

Some foreigner are willing to live in traditional lane houses or older independent villas which are built many years ago. In Chinese, These houses commonly called ‘Lao Yang Fang’ which means “Old Houses’ in English. Some of these building are very gorgeous and beautiful, but sometimes, you should not just base on the appearance and romance of this fashion of living. While the villas may perhaps be attractive to the outside, attractiveness is very normally only skin deep, you should check the plumbing, electrics and waterproofing which are the most important thing relevant to the boundaries of the property , maybe those electrics and plumbing are really very old.

When you look for a house, you will also check the management to solve all your difficulties, you can make a arrangements with your landlord directly, they must be sure they have the ability to protect your family, and you should also think your small children who may feel lonely if they are in a strange environment and the neighbors can not speak English.

You might think you know the pros and cons of living in a house or an apartment, but in Shanghai these reasons will probably be very different from those of your home country:

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