Reviews of developers and real estate agencies in China

China is one of the largest countries in terms of area and the largest country in terms of population, located in East Asia. The People's Republic of China is the world leader in GDP, the level of industrial production of many goods, one of the world's main exporters and the main market. The country is a member of several international organizations: the UN, the World Trade Organization, the Asia-Pacific Economic Cooperation, the G20, BRICS, the Shanghai Cooperation Organization and others. China's strategic position, its proximity to a large number of countries, as well as access to the western seas of the Pacific Ocean contribute to the development of trade, as well as business tourism to China. China's economic well-being is due to competent financial reforms of the PRC Government, the development of industry, the financial sector and trade, as well as a large number of foreign investments in various areas of the Chinese economy. China has developed financial services, industrial production, agriculture, education and science, construction and real estate, as well as other sectors of the economy.

The Chinese Real Estate Market: Development and Features

The Chinese real estate market has been experiencing significant growth since the 1990s, driven by internal migration from rural areas to cities, as well as from the northwestern regions of the country to the more prosperous southeastern regions. The population growth of large cities such as Beijing, Shanghai and Hong Kong has amounted to tens of percent over the past three decades. Internal migration and the rapid increase in the urban population have led to an increase in the number of Chinese developers and Chinese real estate agencies. Over the past decades, entire new giant areas with developed urban infrastructure have emerged in Chinese cities. Some of them have become among the most expensive and prestigious in the country. These areas include the prestigious business district of Pudong, which in the 1980s was replaced by rural settlements and rice fields, and active development began only in the 1990s. Currently, this area is one of the main financial and business centers not only in Shanghai, but also in the whole of China. This area alone generates more than 1% of China's GDP, and its trade turnover accounts for approximately 6.5% of China's foreign trade turnover. Pudong is home to the regional headquarters of many multinational corporations, as well as international and foreign-invested companies.

China's developers include more than 100,000 Chinese and international construction companies, each year building many residential, commercial and essential urban infrastructure projects. More than a hundred thousand real estate agencies in China serve the real estate market, helping clients buy, sell and rent properties in compliance with real estate laws.

With the country's population growth rate slowing significantly, the driver of real estate sales is ongoing urbanization, which attracts huge numbers of people to cities - economic hubs. The estimated number of people in China who live in cities other than their birthplace is more than 375 million, or 27% of the country's total population. This constant flow of people will keep demand high in the residential real estate market for a long time. The most important categories of society that form the demand for residential real estate include young professionals, students, young families, and elderly couples. This fact increases the need for high-quality, efficient work by developers, management companies, and real estate agencies in China. Over the past five years, more than 9,000,000 affordable housing units have appeared in the country. Of these, approximately 10% are new apartments, the rest were brought to the market as a result of renovation, reconstruction, repurposing of real estate and other measures. The rental income from an apartment in China varies depending on the type of apartment, location, size and other factors, but on average it is about 4% per annum.

A significant proportion of modern Chinese residential properties are modern types of properties, as about 70% of all Chinese residential properties were built after 2000. They meet the needs of most buyers. New residential complex projects in China are designed for people with even higher standards, so they provide a comfortable environment with a large number of necessary infrastructure facilities.

One of the fast-growing categories of real estate in China is affordable rental housing for the middle class. This trend is explained by ongoing urbanization and high rates of internal migration. The Chinese government is taking active steps to support construction companies engaged in the construction of affordable rental housing, which reduces the risk of investing in this part of Chinese real estate. The motivation of investors in this case is not only the profit received, but also the possibility of positive social impact and help in solving an important social issue.

China has implemented various economic policies to stimulate the real estate market. These include lower interest rates on existing mortgages, a special program for the development of vacant land, a plan for the reconstruction of unfinished new housing, and the implementation of urban-type village renovation. The Chinese government has also taken measures to support and develop the tourism industry. It has introduced more favorable visa conditions for tourists from many countries to mainland China, taken measures to ensure the functioning of convenient payment systems, as well as mobile payment that supports foreign bank cards, and many tourist locations have implemented ubiquitous Wi-Fi coverage. The result of these national and local efforts was an increase in the number of tourists to mainland China to 8.2 million in the third quarter of 2024, an increase of 49% compared to the third quarter of 2023. The increase in the number of tourists arriving in the country has a positive impact not only on the short-term rental business, but also on the trade industry, which affects the commercial real estate market, in particular in the retail sector.

Reviews of developers and real estate agencies in China

Our website contains ratings and reviews of developers in China and real estate agencies in China, left by real estate buyers. Studying the reviews will give you the opportunity to form your own opinion about the reliability and quality of work of developers and real estate agencies, and make an informed decision about the possibility of working with them.

China is a modern, economically developed, socialist country, a world leader in GDP and industrial production, located in East Asia. The People's Republic of China is the country with the largest population in the world (the number of permanent residents is approaching 1,500,000,000 people), one of the main exporters of goods, and the largest sales market on the planet. There are several climatic zones on the territory of China, ranging from a subtropical climate in the southeast of the country to a sharply continental climate in the northwest. China is distinguished by an extremely heterogeneous settlement of the population: approximately 90% of all citizens live on 10% of the country's territory. Over the past forty years, the country has experienced serious processes of internal migration from rural areas to cities and from less prosperous northwestern regions to rich southeastern cities and provinces. The growth of the country's urbanization indicators has provoked a sharp growth in the construction and real estate sector, the emergence of tens of thousands of new construction companies, as well as more than a hundred thousand real estate agencies servicing the Chinese real estate market. New areas with residential and commercial real estate, as well as necessary urban infrastructure facilities, have been built in numerous Chinese cities. The population of the largest cities in China, in particular Beijing, Hong Kong and Shanghai, has increased by tens of percent over the past thirty years. This process continues, which increases investment in the construction sector, explains the active development of construction companies and real estate agencies, and also affects the regulation of the construction and real estate sector by the state.

Development of Chinese real estate

The Chinese government is interested in providing high-quality, modern housing for Chinese citizens and is taking the necessary economic and legal measures aimed at supporting the construction of housing for poor families. At the same time, numerous skyscrapers and elite residential complexes are being built in Chinese cities, which attract wealthy people and are becoming the hallmark of modern China. These skyscrapers include the 632-meter-tall Shanghai Tower, the 492-meter-tall Shanghai World Financial Center, the 421-meter-tall Jin Mao Tower, China Zun, China World Trade Center, Fortune Financial Center, China Central Television Headquarters, and many other high-rise buildings in various cities in China.

The real estate sector in the People's Republic of China is represented by a large number of residential and commercial properties. In the residential real estate sector, both individual residential construction (houses, mansions, cottages with land plots, villa communities) and the construction of low-rise and high-rise residential complexes from economy class to luxury real estate are developed. Due to the ongoing development of the trade, industrial and financial sectors, commercial real estate is rapidly developing in the country. Chinese developers are building all types of commercial real estate: office buildings, retail spaces, warehouses and production sites. The activities of construction companies in China are under strict control by government agencies and are regulated at the state and local levels. The country also licenses the activities of real estate agencies and individual real estate agents.

Experienced, professional real estate agents not only select the best residential and commercial properties within the client's budget, but also ensure the legal purity of real estate transactions. The result of the high-quality work of professional real estate agents is a reduction in fraudulent actions in the real estate market, an increase in trust between the parties to the construction industry, an increase in the security of real estate investments, and, consequently, the attraction of new conservative real estate investors whose investments contribute to the development of the construction industry.

Real Estate Investment in China

Residential real estate has accounted for the majority of real estate investment in China in recent years, making a significant contribution to the construction industry and the overall economy. Following the peak of residential real estate sales in 2021, the Chinese real estate market has slowed somewhat in many cities, but some locations have seen a significant increase in residential real estate sales, particularly in Shanghai and Xiamen. Residential real estate sales there grew by approximately 9%. The Chinese government has taken steps to stimulate residential real estate sales: Guangzhou and Shenzhen have reduced the minimum down payment requirement to 40%, and restrictions on real estate purchases have been lifted in many smaller cities.

Buying Real Estate in China by Foreigners

Foreigners are eligible to purchase real estate in China, but there are some additional rules and restrictions for them. Foreigners must live in the People's Republic of China for at least one year on a work or study visa before being eligible to purchase real estate. Purchasing real estate in China does not provide full ownership rights, but is receiving an apartment from the government for temporary use for a period of less than 70 years. This period begins from the moment the developer officially receives the land for construction work. The law provides for the right of buyers or their heirs who continue to own the property to extend this period for an additional fee, which is currently at least $ 2.5 per 1 square meter of area. A foreign citizen and his family have the right to purchase only one apartment, and are also obliged not to rent this apartment in the future. It should be noted that the total living space indicated in official documents for real estate includes not only living space, but also public areas, which include a stairwell and an elevator.

A foreign citizen is required to obtain a certificate confirming the fact of legal residence in the country for more than one year. It is obtained from the local public security bureau. The purchase and sale agreement with a foreign citizen must be certified by a notary in China. In addition to a passport, the following documents are required to conclude a contract: a document confirming permanent registration in China, an employment contract, and a bank statement. In addition to the contract, the foreign buyer signs an official statement in which he or she undertakes not to use the property for commercial purposes or to rent it out. After this, the foreign buyer makes a written request to the Foreign Affairs Office asking for permission to purchase housing. After the purchase has been approved by government agencies, the buyer must pay 30% of the property value as a deposit. The only possible currency for settlements in China is the yuan. After paying the deposit, the buyer submits documents to the local property rights office. After paying the seller the remaining amount of the property value, the buyer receives a certificate of ownership.

Chinese Real Estate Prices

The cost of real estate in different cities and provinces of China varies significantly. The northwestern part of the country is more suitable for buyers who are looking for budget real estate. The southeast of China has always been distinguished by higher prices for residential and commercial real estate. In addition to location, the cost of real estate depends on other factors: area, type of real estate, layout, specific location in the city (real estate in the central part of the city and prestigious, business districts will cost significantly more). Approximate cost of real estate in different cities of China:

• Hong Kong, a square meter of real estate costs an average of $21,000;
• Macau, in the special administrative center of the PRC, the cost of a square meter is about $13,500;
• Beijing, in the capital of China, a square meter of residential real estate can be purchased for an average of $10,500;
• Shanghai, the approximate cost of a square meter of real estate is about $8,500;
• Guangzhou, China’s third-most populous city, sells residential property for around $6,500 per square meter;
• Tianjin, the economic and cultural hub of northeastern China, sells for $2,800 per square meter;
• Heihe, a city bordering the Russian Federation, offers residential property for an average of $750 per square meter.

China’s developers are building a large number of commercial properties. More than 20 million square meters of new office space will be commissioned between 2025 and 2027. Of this, approximately 4 million square meters of new office space will be built in China’s four largest cities.

Hong Kong is expected to add around 3.5 million square feet of new office space by the end of 2025, the highest since 2008. Much of the office space will be located in the Greater Tsimshatsui and Greater Central areas. Most of the commercial real estate transactions in recent years have been in office properties, but the hotel and affordable housing sectors for long-term rental are also gaining popularity.

Supply of Class A office properties in different cities in China:

• In Beijing, the supply of Class A office properties is about 585,000 m² with a vacancy rate reaching a quarter of the total property (22.5%);
• In Shanghai, the supply of Class A office properties is close to 1,900,000 m² with a vacancy rate of 23%;
• In Shenzhen, the supply of Class A office properties is about 900,000 m² with a vacancy rate of 30%;
• In Guangzhou, the supply of Class A office properties is about 1,050,000 m² with a vacancy rate of about 25%.

Rating of Chinese real estate agencies and developers

Our website contains ratings and reviews of Chinese developers and Chinese real estate agencies left by real estate buyers. Studying the reviews will give you the opportunity to form your own opinion about the reliability and quality of work of developers and real estate agencies, as well as make an informed decision about the possibility of purchasing certain real estate from developers and working with real estate agencies.