China is pursuing a policy of urbanization: by the end of 2024, the influx of residents from rural areas to cities increased by 65% compared to the previous year. This directly affects the demand for real estate in new buildings in China, so local developers even exceed the plan, due to which there are always vacant properties on the local market, including for sale to foreigners.
Features of buying new real estate from developers in China
According to the law, a foreign citizen can purchase real estate in China from a developer, but only if it is his only residential unit for personal residence. Also, before purchasing, you must legally reside in the PRC for at least one year. Commercial real estate is available to foreigners without restrictions. All transactions are notarized by local housing authorities, and the purchase tax is 5-6% of the cost of the property.
Advantages of buying real estate in China from developers:
- State quality control. Developers are required to comply with standards set by the Ministry of Housing and Urban Development. For example, since 2021, mandatory stress tests have been introduced for buildings in seismic zones.
- Infrastructure integration. New housing in China's Tier-1 cities (Shanghai, Beijing) includes access to high-speed metro lines, and schools and hospitals are within 1-2 km.
- Preferential mortgage programs. In 2024, the People's Bank of China lowered the base mortgage rate to 3.9% for primary housing. Mortgages are available to foreigners.
Prices for new buildings in China
The property market in China is diverse, from compact apartments of 30-50 square meters to villas of over 200 square meters. But prices vary greatly depending on location. The most expensive properties are in Beijing and Shanghai, where gated communities with parks, swimming pools, and smart home systems are popular. The most affordable housing is in remote rural and border areas like Heihe.
Average prices for new buildings in China:
| City | Average price per sq.m (CNY) | Average price per sq.m (USD) | Object type |
| Beijing | 65,000 | 9085 | Apartments, villas |
| Shanghai | 50,000 | 7000 | Apartments, penthouses |
| Shenzhen | 63,000 | 8800 | High-tech residential complexes |
| Hangzhou | 27,950 | 3900 | Apartments, townhouses |
| Heihe | 4400 | 615 | Budget apartments |
Popular cities in China for purchasing real estate from a developer
Chinese developers are most active in Shenzhen, the center of the tech industry thanks to the presence of Tencent and Huawei. In the Nanshan district, new buildings are aimed at IT specialists, but cost from $8,400 per square meter due to the fact that demand exceeds supply.
The situation is similar in Shanghai. The financial center of the country is developing faster than new housing can be built, which affects prices. Popular areas - Pudong and Hongqiao are actively being built, but finished properties are often more expensive than $7,000 per sq. m.
Hangzhou is recognized as an e-commerce hub, as it is home to Alibaba's headquarters. The Binjiang area is popular with expats due to its relatively low prices, starting at $3,500 per square meter.
The most affordable city for buying a home is considered to be the border city of Heihe. It is located on the border with the Russian Federation, which is why the local real estate market is oriented, among other things, towards Russians. Apartments in new buildings cost from $615 per sq.m.
The capital of Sichuan Province, Chengdu, is also considered one of the most affordable in China. Prices for new buildings here start at $2,100 per square meter.
