Investment Property in Suzhou

Investment Real Estate in Suzhou

Investment Property in Suzhou
Investment Property in Suzhou

Suzhou property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Suzhou.

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Search Map of Suzhou Investment Real Estate

Suzhou (Chinese: 苏州; Suzhounese pronunciation: [səu tsøʏ], Standard Mandarin pronunciation: [sú.ʈʂóu]), alternately romanized as Soochow, is a major city in southeastern Jiangsu Province of East China, its city center being 100 km (62 mi) west of that of Shanghai – and outer suburbs of the two global hubs meet. It is a major economic center and focal point of trade and commerce, and Jiangsu’s second-largest, surpassed by its capital Nanjing. The city’s north waterfront is on a lower reach of the Yangtze whereas it has its more focal south-western waterfront on Lake Tai – crossed by several waterways, its district belongs to the Yangtze River Delta region. Administratively, Suzhou is a prefecture-level city with a population of 4.33 million in the city proper, and a total resident population (as of 2013) of 10.58 million in its administrative area. Its urban population grew at an unprecedented rate of 6.5% between 2000 and 2014, which is the highest among cities with more than 5 million people.

Founded in 514 BC, Suzhou has had a long and productive history. Local museums host abundant displays of its relics and many sites of historical interest exist. Around AD 100, during the Eastern Han Dynasty, it became one of the ten largest cities in the world mostly due to emigration from Northern China. Since the 10th-century Song dynasty, it has been an important commercial center of China. During the Ming and Qing dynasties, Suzhou was a national economic, cultural, and commercial center, as well as the largest non-capital city in the world, until the 1860 Taiping Rebellion. When Li Hongzhang and Charles George Gordon recaptured the city three years later, Shanghai had already taken its predominant place in the nation. Since major economic reforms began in 1978, Suzhou has become one of the fastest growing major cities in the world, with GDP growth rates of about 14% in the past 35 years. With high life expectancy and per capita incomes, Suzhou’s Human Development Index ratings is roughly comparable to a moderately developed country, making it one of the most highly developed and prosperous cities in China.

Suzhou is also one of the top 50 science cities in the world by scientific research as tracked by the Nature Index, and home to multiple major universities in China, including Soochow University, Suzhou University of Science and Technology and Changshu Institute of Technology.

The city’s canals, stone bridges, pagodas, and meticulously designed gardens have contributed to its status as one of the top tourist attractions in China. The Classical Gardens of Suzhou were added to the list of the UNESCO World Heritage Sites in 1997 and 2000. Suzhou is often dubbed the “Venice of the East” or “Venice of China”.

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The financial stability of Suzhou has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Suzhou

Renting out your Suzhou buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Suzhouare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Suzhou and be prepared to change your initial outlook.
  • Thoroughly research the Suzhou location with a special emphasis on fringe areas outside the main Suzhou metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Suzhou.
  • Ensure that your target investment property in Suzhou appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Suzhou properties yourself is an easy option, but are these savings justifiable when you run into Suzhou red tape? Physis Realty Suzhou office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Suzhou buy-to-rent sector.

With our expert guidance, investing in Suzhou provides the secure knowledge that your money is working harder than it would in a local Suzhou bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Suzhou, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Suzhou property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Suzhou

Flipping property in Suzhou

Flipping property is when we advise clients to buy a Suzhou property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Suzhou market has a time to react to the renovation.

The Flipping Strategy in Suzhou

Investment property flipping in Suzhou is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Suzhou real estate investments are sometimes referred to by professionals as ‘distressed’ Suzhou real estate.

What is distressed Suzhou property:

  • Suzhou property in need of renovation
  • Suzhou real estate with a change of puropose and use
  • Oversold Suzhou property
  • Bank repossessions in Suzhou

Put simply, long term investors in Suzhou purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Suzhou investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Suzhou property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Suzhou use a minimum profit value of 22% when looking at potential Suzhou projects. The reason for this is because there are lots that can go wrong in Suzhou property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Suzhou

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Suzhou, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Suzhou should be entrusted to only the highest-quality agency.

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