Nanning Real Estate Property Investment Guide
Buying & Selling Properties
In Guangxi China
Property Investment Guide: China’s Economy and Property Markets
China’s Gross Domestic Product in 2018 was 6.6%. In 2017, GDP was at 6.9%, following growth rates of 6.7% in 2016 as commented by the National Bureau of Statistics of China.While the Chinese economy is slowing under its ‘new normal’ operating environment, its property market in key cities, especially Shanghai, Beijing and Suzhou is still robust. The country’s expansionary policies and consumption led growth has contributed to the sustainability of the property prices.
In 2019, housing prices in 70 big Chinese cities increased an average of 10.6 per cent year on year in March. This now quite different from the earlier years where we see property costs in China increased swiftly from 2000 to 2008, sustained by reduced rates of interest as well as low interest rate credit. While during the global financial crisis, China’s real estate market slowed down dramatically from end-2008 to mid-2009, the government CNY4 trillion stimulus package has assisted property developers to secure loans with reduced capital requirements. Also, during that time, property buyers were able to obtain finances due to the reduction in rate of interests. In 2013, with these measures, existing residence prices rose by nearly 20% in Beijing and in Shanghai we see about 13% increase.
China’ cities are categorised into city tiers depending on various factors such as population size, infrastructure, consumption and others. The Tier 1 cities are Beijing, Shanghai, Guangzhou and Shenzhen. There are 30 cities under tier 2 and 70 cities in tier 3. Tier 2 cities includes Xiamen, Fuzhou, Zhuhai, Nanning and others. Tier 3 cities are smaller and incudes Guilin, Shantou and others. China’s residential property market is not uniform. Demand in Tier 1 and tier 2 cities has resulted in rapid property prices and property shortages. In contrast, the smaller cities in Tier 3 and below has witnessed unsold housing units. As such, the government has adopted different policies for different cities or locations for regulating the property market.
With private ownership of homes being introduced in 1998 by the government, the property prices in China’s big cities have escalated rapidly as mentioned earlier. Shanghai, the financial hub and Beijing are now ranked in the top 10 most expensive cities to live in the world. Over the last couple of years, we have seen prime office in Beijing as well as Shanghai prices going up from US$ 8,000 to US$ 9,500 per square metre (psm). Also, control measures are put in place for foreigners in acquiring properties.
Types of Properties
Properties available includes office, shops, soho, loft and condo
Can Foreigners Buy Properties In Nanning?
According to the general rules in purchasing properties in China, foreigners who have worked or studied in China for at least a year are allowed to buy a home. Buy these requirements could vary depending on region and cities. Therefore, foreigners should check with the specific region or city local authorities before purchasing their properties.
Buyers should note that there is no private ownership of land in China. That is, the property owner essentially is only obtaining rights to use land and a land lease of up to 70 years is usually granted for residential properties.
Nanning which is key in the Beibu Gulf Economic Zone and the permanent host of the China-ASEAN Exposition, loosen its restrictions in the property market in 2014 which allow non-residents Chinese to purchase properties. Since then, Chinese foreigners have been purchasing residential and office units in popular areas such as the ASEAN business district, WuXiang and Fangchenggang.
When selecting an property resident or investment area it will be good to consider the some of the following factors:
- Does the city have good infrastructure and connectivity internally and regionally?
- Does the city has good local authorities management?
- Do you see non-locals living there with their own homes?
- What are the current and potential amenties coming up in the area?
As mentioned earlier, the regulations can varies between cities and it is thus wise the engaged reputable and honest real estate agents to assist in your property purchases. Typical process in purchasing a property would involve putting a down payment and signing the property purchase offer.
The initial payment is normally 30% of the purchase price. Over the next couple of months, the outstanding balances must be paid off. When the property is ready for occupation, property acceptance, title transfer, and obtaining the title certificate follow.
As such, the assistance and guidance is necessary as they can interact with the property developers and help in ensuring a smooth property purchase transaction.
Property Investment Selection
Nanning 南宁 Real Estate
Property For Rent
Property owner that wish to lease out your Nanning or FangChengGang properties, you may send us your property details and we will help you find the best tenant within the shortest possible time.
Property For Sale
Property owner that wish to resell your Nanning or FangChengGang properties, you may send us your property details and we will help you find the best buyer within the shortest possible time.