Real Estate Part I

The featured image is the real estate price based on different areas in Beijing, you can see the averaged price within 4th ring express way is beyond 80,000/per square meter($12,000/per square meter), the real estate in good school district is even higher.

 

Real Estate market is crazy in Beijing, over decades, if you do not own your own house or apartment, you probably never have the chance again.  The amount of average salary in Beijing is $1200 per month, but ten times for the apartment price per square meter, that is $12000 per square, if you want to buy a 100 square meter apartment, you have to pay at least $ 1.2 million. Economist have made their academic analysis, but I never understood it.

Some concept different between China and US, is the apartment, in US, apartment is usually for renting, but in China, most people would own or buy the apartment, and the house, as a luxury real estate, would not be considered a ordinary residence, you have to pay more tax for owning a house.

In 2016, the price of most apartment increased 30%, some even 50%, everyone is scare of the future, the transaction is crazy high, but after strict regulation issued by authority in Mar. 2017, the market is just stuck. In the middle of 2017, the price drop a little, some 10%, but every one has worrisome for the future, but who knows.

The regulation strict the loan, you have to pay almost 90% in practice, only 10% for loan. As always, a family can only buy two apartments even under divorce situation.

Like in US, if I want to buy an apartment, I usually find a real estate agent, they will help me to target the apartment based on my requirement, then to see the apartment.  As the market is steady, I am going to buy a apartment in a good school district for my kid. This would probably last for half an year or the whole year, I will document something here in the process.

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