Significant Development for Property Market in Shanghai
- Written by: Bridgewest
- Posted: 2016-04-04
Persons interested in purchasing a home in Shanghai, China, or foreign investors who want to establish a business here in the real estate domain should know that Shanghai is the main city in this field, as the property market is thriving. The real estate industry has been recently pushed forward by a new governmental policy related to the sum of money individuals should pay when buying a property. Persons who want to receive more details on this matter can address our team of lawyers, who can provide you with assistance on the real estate market available in China; at the same time, our lawyers can represent you through the purchase process.
Shanghai, the main property market in China
Shanghai represents at the moment the most important real estate market in China, as persons living in the city are very interested in purchasing a property here due to a new measure imposed by the local authorities, which refers to the first down-payment for the purchase of a second property.
The new Chinese property regulations state that the persons who already own a property in China can purchase a second property, only if the first payment of the apartment represents 50% of the value of the property. If the property has more than 140 square meters or if its price is above 4,5 million yuan, the first down-payment should represent 70% of the value of the apartment.
In this sense, the Chinese authorities have seen a massive interest in purchasing new properties, with more than 1,700 properties being sold in one day.
The legislation is applicable only for the persons who want to buy a second property in Shanghai; our team of Chinese lawyers can offer more information on the real estate legislation applicable here.
Luxury real estate market in Shanghai, China
Shanghai has recently experienced a market boom in the real estate field due to a set of factors, such as:
• favorable policies for mortgages;
• deed tax cut;
• limited supply.
According to the data presented by China Index Academy, the average sale of properties in Shanghai was situated in March at approximately 800 units per day, compared to the 170 units/day in March 2015.
An important aspect is related to the luxury property market, which has marked in 2016 a significant increase. In January and February 2016 there were registered 255 transactions of luxury units, which had a value of more than 20 million yuan; compared with the same period of time of 2015, the luxury market increased in 2016 by 222%.
If you are interested in receiving more information on the property market in Shanghai, please contact our team of Chinese lawyers for assistance on this matter.