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Jul 26
2008
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"The tide of modernism sweeping across the capital has glossed up its austere communist outlook."
The latest residential projects take a lead from the iconic Olympic venues designed by the likes of Norman Foster and Rem Koolhaas. Location is everything, advises Macdonald. "Investors should keep an eye on emerging neighbourhoods like Xicheng and Haidian." Buyers may prefer the lakes and parks of the Central Villa District (CVD), home to diplomats and businessmen. Traditional siheyuan courtyard homes in communities such as Cathay View start from £680,000.
Hainan: Best for fun in the sun
Few Westerners have heard of Hainan, yet with visitors to China forecast to top 60million by 2010, the island already has residential tourism firmly in its sights.
Located off China's south coast, an hour's drive from Hong Kong, Hainan's beaches and tropical climate have been a "local" secret for years. Now luxury hotel chains such as the Ritz-Carlton and Singapore-listed Banyan Tree are drawing a well-heeled crowd, and property prices have risen by 20 per cent a year for the past three years.
A small number of Britons own second homes which they rent out. But, as Peter Han, of Tropical China Real Estate, points out, numbers have been creeping up since 2006 when Beijing opened up the skies to foreign airlines transiting through Hainan, with a surge in routes including 15-hour non-stop flights from London with BA, Air China and Cathay Pacific.
Most sun-worshippers head for Sanya, Hainan's second-largest resort - a haven of beaches and coral reefs. Frontline apartments in family-friendly developments such as Palmera at Sanya Bay can be bought for £40,000, with detached villas in the upscale marina resort of Sanya Dragon Peninsula from £200,000.
Yalong Bay, Sanya's premier spot for diving and golf, now has Yalong Bay Villas, a boutique development of Balinese-style cottages. Four-bedroom villas start from £350,000 with Tropical China Real Estate.
Buying in China
- Foreigners buying as private individuals can only purchase one residential property.
- Property can be acquired in one of two ways: by having a Chinese residence visa for a minimum of one year, or by setting up a wholly owned foreign enterprise (WOFE), which can buy on the owner's behalf.
- All land is owned by the government. Property ownership is on a leasehold basis, the leasehold period for residential properties being 70 years. Standard international practices apply for lease renewal.
- Buying off-plan: once a preliminary purchase agreement is signed and notarised, the property is registered with the Land and Property Bureau. In major cities, a developer cannot offer a unit for sale until the project is 50 per cent complete.
Beijing
Château Regalia
Wow-factor gated community in the exclusive north-east suburbs. Easy access to airport and downtown. Stylish Mediterranean-style villas. Prices from £600,000. www.savills-bj.com
Beijing Riviera
In Chaoyang, a stunning low-density community with golf course. Properties range from four- to six-bedroom villas, townhouses and duplexes. Prices from £450,000. www.savills-bj.com
Shanghai
San Marino Bridge
Traditional four-bedroom, three-bathroom mansion (total 350sqm) located in the lively eastern district of Pudong. High ceilings, wooden flooring and high-spec American-style kitchen. Private landscaped garden. £885,000. www.shanghai-realty.com
Villa Riviera
Contemporary Asian-style villa with feng shui-inspired interior in the exclusive neighbourhood of Xuking Town, Qingpu District. Inner courtyard and secluded Oriental garden with water features create an intimate space for families. £730,000. www.savills-sh.com
Man at the top
Dipping his toes into Shanghai's property market, company director Neil Woodcock, from London, paid £100,000 in 2005 for his penthouse unit in the Hyundai Plaza apart-hotel complex in downtown Puxi. "It's a classic buy-to-let product," he says, "with no personal usage. I receive a guaranteed annual rental return of 7.5 per cent for five years, with the option of selling on after five years.
Units have appreciated by 15 per cent with a 70 per cent occupancy rate to date, which gives an indication of the strength of the market." A frequent traveller to China, Woodcock put Shanghai top of his investment list. The World Financial Centre, completed last week, will put the city firmly on the global map, he says. "Multi-nationals and key financial institutions are relocating from Hong Kong. The Olympics will give a fillip to the property market, but the bigger-picture essentials are already there - inward migration and heavy-duty business growth.
"I bought through UK agent Property Frontiers who guided me through the process, but I also know investors who have drawn up a power of attorney, in Chinese, that give delegates the power to sign documents on behalf of the buyer. Whatever you do, good legal advice from a Chinese-speaking lawyer is essential."
Please note, Black Swan Capital used to be called City Trading Post. Where appropriate, references to City Trading Post in the original article have been replaced in this transcript.