Property in China places Britons in arguably the best-performing of the BRIC bloc. China’s economy has been expanding at an annual rate of almost ten per cent each year since the 1970s, according to the World Bank. Its cities have become metropolis-standard urban environments instantly recognisable to people the world over.
With the BRIC nations – Brazil, Russia, India and China – together expected to dominate global markets in the decades to come, investment in all forms, including in property, is seeing steady demand in China. Expect to pay a premium for the top-tier cities, Shanghai and Beijing. But also look at the second-tier locations, which are seeing greater interest and development as the prime locations go up in price.
Buying property in China
When it comes to actually buying property in China, you may want to consider your right to be in the country. It can be more difficult to buy Chinese property as a foreigner without a clear reason to be based there for the long term. If you are confident that you have a demonstrable reason to live in China that the authorities will accept as legitimate, then be sure that you have the paperwork to back it up and proceed with your purchase.
If you are buying while still based in the UK, you may need to appoint an overseas property agent to handle the negotiations and confirm all of the details of the sale including, perhaps most importantly, the price to be paid. All of the relevant information should be provided to you in a document that you and the Chinese vendor or developer can sign, setting out both parties’ expectations.
Living as a British expat in China
Living in China is definitely not about relocating your existing life to a new country without making any changes. It does not have the tourist-focused areas that might be found closer to home in, for example, Spain. Instead, moving to China is about learning a new way of life and a new culture.
Food, medicine, language and lifestyle are all different in China and you may find it challenging at first to adapt to this, not to mention the language barrier that you will face if you relocate to the country without first being able to speak Mandarin or the appropriate tongue for the area to which you are headed. However, it is almost guaranteed that those who do manage to make the transition to living as a permanent Chinese citizen will feel culturally enriched as a result.
Do consider the impact of the different healthcare system on any specific medicinal needs that you have. Awareness of allergies may not be so great as in the UK, while the rejection of western medical techniques is also likely to be widespread. If you’re prepared to deal with these issues – or even to embrace them as part of your new life abroad – then China may be the perfect destination in which to do so.
Property in China’s cities
Property in China’s major cities such as Shanghai and Beijing may be the most desirable, but the reason for buying may play a part in deciding where to live. If the purchase has a significant investment element to it and larger rates of capital growth are desired, you may want to look to the traditional second-tier cities.
In its mid-2010 quarterly update on China’s economic conditions, the World Bank noted a spike in property prices following the government’s attempts to ensure continued economic growth through the adoption of an "expansionary macro policy stance". Measures were taken following this to tighten the market somewhat and prevent investors from buying up properties purely for their capital value, which could continue to have an effect on property sales in the country – particularly in the most desirable locations – for some time to come.