Home ownership in Hefei

[gregmcd101]

Hello.  I just bought an apartment in Hefei, though I won't be living there for some years to come. It is part of the Chinese thing - 'you wanna marry our daughter - buy a house!!" My Fiance's hometown is Fengyang, a couple of hours from Hefei. I am currently working in Guangzhou, but guess we will move to Hefei in 5 years  or so, so this post may be somewhat premature, tho I expect we will spend many holidays there.  Anyway, the apartment is in the ShuShan district, in a Vanke development with a Tesco on one side and a Walmart on the other,. I am just after some basic info really (I had little say in the location, other than stumping up the cash!!) what is it like there? anyone living nearby? how do you see the future of this area and HF in general? how are employment prospects there in the next few years? (I am a university teacher with experience in 2 of China's top universities) How do you see property prices developing there inthe coming years? Are the new airport and the forthcoming metro signs of a bright future? I realize I am being a little vague, but I am just curious - share your thoughts
   
         <longitude>117.2363864222122</longitude>
         <latitude>31.83101115069265</latitude>
         

[kaibo 开 博]

Hi,

It is always difficult to speculate down the track a few years. However, Shushan has future development potential, as does most of Hefei.

The big questions in the near term are perhaps:
What will 2012 bring?  
How will China fair with the impending US economic crash & subsequent world financial crisis?

Bear in mind that reports suggest there are some 85 million vacant apartments across China. Although it is suggested that China does not have a ''real estate bubble'' like the US had, an impending crash that could make 2008 ''sub-prime'' look lame, will no doubt rattle the windows of overly speculated property prices acoss China & cause a rush for mass sell-offs from investors. But then that too is speculative!

Currently word of mouth reports suggest that property prices have dropped across Hefei by about 500 yuan per metre squared. Speculatively, my estimate of that report is that it is just a dip from the cooling-off of the economy and should be about the sum total of any dips this year.

I too bought a property last year in Hefei's HETDA zone in Baohe district & sometimes I wonder if it will have long-term beneficial gains. I suggest the best approach is to encourage yourself that it is a potential investment that has been made for your future together.

Good luck with it.

[gregmcd101]

Thanks - yes, property prices in Hefei have dipped a little, my place was indeed 500 rmb M2 below it's peak price. The bursting bubble is always a factor, but then again if we worry about it too much we will never buy anything. I am not overly worried, I will be keeping it I guess, but you never know - If a kick ass job comes up somewhere else  Hefei may never materialize for us.  BTW has anyone heard of some future Sino-Irish hotel development around Chao lake, my GF met some guy on a train going to Hefei who said he was working on the project - now, that could be interesting

[Aussie Mike]

Anywhere on the Western side of Hefei around the reservior and mountain is desired space.
Hefei Inner has issues e.g. regulations, heritage listing, etc.
The rest is more speculative.

[gregmcd101]

Anywhere on the Western side of Hefei around the reservior and mountain is desired space.
Hefei Inner has issues e.g. regulations, heritage listing, etc.
The rest is more speculative.

 Hmm i am kinda in that area equidistant on an east west line between the centre and the mountain slightly south of the centre

[Aussie Mike]

Same area, anywhwere near Da Shu Shan will be a safe investment.

[gregmcd101]

Same area, anywhwere near Da Shu Shan will be a safe investment.

Cheers Mike. Good to know.  I'll buy you a beer when next in town!!

[FerryDubbers]

Welcome to Hefei!!

Let me share some of my experience.
The most important factors in buying property are: Location, management and reputation of the developer.
I was looking for property in Shushan in 2004 and looked at some of the projects underdevelopment there.
One was Singapore Gardens along Chang Jiang Xi Lu, which looked good on the plans, they had some nice demo units and near the lake.
The other was Gui Hua Yuen (Sweet Osmanthis Garden) on Huang Shan Xi Lu.
My Hefei friends advised the last one, as the developer (Green Town, from Hangzhou) was one with the best reputation in China.
I'm glad I followed the advise: a few years after the owners moved in, the whole thing started to disintegrate.  Shops that were destined to become trendy boutiques on the plans were rented out to garages and workshops repairing tools and equipment and the pavement was soon dripping with oil.  Ceilings of the apartments were low and rooms small, in order to put the maxumum number of apartments and rooms etc.

By contrast, Gui Hua Yuen remains looking smart years after the opening. 
You have to look out not to break your neck over the many staf tending to the gardens and facilities.
Our apartment was the only one that was decorated in our 8-unit building and we were only using it when in Hefei (we spend most of our time in Beijing).  Still every morning a women with a bucket of water was going through the public space mopping the floors and stairs. And we were only paying RMB 2000 management fee per year!!

Since we were using the apartment infrequently and the possible bubble in mind, we sold it in 2009, with over 100% profit.
Talking about the bubble, I agree with Kaibo, that it is just a temporary dip.  Some property may loose value, but those in good location and professional management will always keep their value on the long run.

Good luck with chasing houses!!

[Aussie Mike]

Thanks Ferry, we appreciate the info.
I'd love to meet up with you again next time you are in Hefei.

[gregmcd101]

Thanks Ferry - I have actually already purchased, the developer is Vanke, who are supposed to be good, very big anyway.  I think we will be paying 140 a month (14 per sq/m management fee. Vanke apartments come finished to a pretty high standard which i see as NB - otherwise you might face years of ongoing neighbourly hammering.  Also ours is the last building in the development to be finished, so, when it is done the place should be nice and quier (relatively) any one hear anything of Vanke's reputation?

[gregmcd101]

''http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=Marketing_Building_Rome_in_a_day_WEB.pdf&mode=wp

'We do not include a forecast for house prices in this report, but real estate assets in renminbi are likely to be one of the best-performing global asset classes over the next decade.''


Fortunately, such concerns are overblown. Although China’s housing sector is likely to face a correction in the short term, underlying demand—driven primarily by incomes and urban population growth—for bigger and better housing is growing so rapidly that such an adjustment would be short- lived.''

As others have said on this thread there seems to be a correction happening right now but they and  'The Economist' both say this is short lived and the future is rosy.  According to this report, very rosy indeed

[Aussie Mike]

''http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=Marketing_Building_Rome_in_a_day_WEB.pdf&mode=wp

You need to register with Access China before you can download.

Process is the next step then the whitepaper will be downloaded.

Worth registering for, Access China is a non-government, non-commercial, balanced view.

Some extracts
1. China is not facing a major housing bubble, although there could be a short-term mild correction.
2. At current rates of construction, China can build a city the size of Rome in only two weeks.
3. China’s urban population is forecast to continue to grow until 2039.


Worth reading

Added to that; the support Chinese families have for each other, there is no need to sell in low times.

[kaibo 开 博]

I watched a credible report today that stated again that China does not have a 'housing bubble.' A bubble only exists when speculation in property is associated with unsustainable debt. The expert stated that is not the case in China. However, if there was an international collapse of the worlds' financial system, we will all be scratching in the dirt for pennies.

[Yzzie19]

Coming for work tour in a week, to see if a place I could spend 3 years for work.
Was hoping to get a private residence, any such thing in the area?
Also wondering if it is safe to bring wife and two small dogs?
Any suggestions or comments?
Getting set up with a relocation company, once I have the name of it, will post to see if anyone is familiar them.

[Aussie Mike]

Yes, there are but scarce and expensive.
Wife and dogs would be safe. There are some great places to exercise the wife and picnic with the dogs.

I suggest you contact Crown
Here's a thread for you with contacts