Investment Property in Xiamen

Investment Real Estate in Xiamen

Xiamen 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 Xiamen.

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Search Map of Xiamen Investment Real Estate

Xiamen (Chinese: 厦门; sh(y)ah-MEN, -⁠MUN), alternately known as Amoy (, from Hokkien pronunciation [e˨˩ mŋ̍˨]), is a sub-provincial city in southeastern Fujian, People’s Republic of China, beside the Taiwan Strait. It is divided into six districts: Huli, Siming, Jimei, Tong’an, Haicang, and Xiang’an. All together, these cover an area of 1,700.61 square kilometers (656.61 sq mi) with a population of 3,531,347 as of 2010 and estimated at 4,290,000 as of 31 December 2019. The urbanized area of the city has spread from its original island to include most parts of all six of its districts, and with 4 Zhangzhou districts (Xiangcheng, Longwen, Longhai and Changtai), form a built-up area of 6,279,700 inhabitants. This area is also about to connect with Quanzhou in the north, making up a future metropolis of nearly eight million people. The Kinmen Islands (Quemoy) administered by the Republic of China lie less than 6 kilometers (4 mi) away.

Xiamen Island possessed a natural harbor in Yundang Bay, but Fujian’s international trade was long restricted to Quanzhou or to Guangzhou in Guangdong. Under the Qing, both before and after the First Opium War, there was a large-scale emigration of Chinese from southern Fujian who spread Hokkien-speaking communities to Singapore, Malaysia, Indonesia and the Philippines. The overseas Chinese continue to support Xiamen’s educational and cultural institutions. As part of the Opening Up Policy under Deng Xiaoping, Xiamen became one of China’s original four special economic zones opened to foreign investment and trade in the early 1980s. Its former harbor was enclosed using land excavated during the city’s expansion, however, the city remains an island connected by bridges to the rest of mainland China.

The city is well known for its mild climate, Hokkien culture and Gulangyu Island, as well as its relatively low pollution. In 2006, Xiamen was ranked as China’s second-“most suitable city for living”, as well as China’s “most romantic leisure city” in 2011.

Xiamen is also one of the top 100 cities in the world by scientific research as tracked by the Nature Index according to the Nature Index 2020 Science Cities. The city is home to several major universities, notably Xiamen University, one of China’s most prestigious universities as a member of the Project 985.

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The financial stability of Xiamen 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 Xiamen

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

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

Set goals based on how much rental yield will be required and the local rental yield rates in Xiamen and be prepared to change your initial outlook.
Thoroughly research the Xiamen location with a special emphasis on fringe areas outside the main Xiamen metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Xiamen.
Ensure that your target investment property in Xiamen 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 Xiamen properties yourself is an easy option, but are these savings justifiable when you run into Xiamen red tape? Physis Realty Xiamen office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Xiamen buy-to-rent sector.

With our expert guidance, investing in Xiamen provides the secure knowledge that your money is working harder than it would in a local Xiamen 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 Xiamen, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Xiamen property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Xiamen

Flipping property in Xiamen

Flipping property is when we advise clients to buy a Xiamen 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 Xiamen market has a time to react to the renovation.

The Flipping Strategy in Xiamen

Investment property flipping in Xiamen 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 Xiamen real estate investments are sometimes referred to by professionals as ‘distressed’ Xiamen real estate.

What is distressed Xiamen property:

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

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

Calculate profit that you make from Xiamen investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Xiamen

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 Xiamen, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Xiamen should be entrusted to only the highest-quality agency.

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