Investment Property in Hangzhou

Investment Real Estate in Hangzhou

Investment Property in Hangzhou
Investment Property in Hangzhou

Hangzhou 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 Hangzhou.

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Search Map of Hangzhou Investment Real Estate

Hangzhou (Chinese: 杭州, Hangzhounese pronunciation: [ɦɑ̃.tse], Standard Mandarin pronunciation: [xǎŋ.ʈʂóu] (About this soundlisten)), also romanized as Hangchow, is the capital and most populous city of Zhejiang, People’s Republic of China. It sits at the head of Hangzhou Bay, which separates Shanghai and Ningbo. Hangzhou grew to prominence as the southern terminus of the Grand Canal and has been one of China’s most renowned and prosperous cities for much of the last millennium. Its West Lake, a UNESCO World Heritage site immediately west of the city, is among its best-known attractions. A study conducted by PwC and China Development Research Foundation ranked Hangzhou first among “Chinese Cities of Opportunity”. According to GaWC, it is a World City with a “Beta” classification, together with Chongqing, Nanjing and Tianjin in China. It is also one of the world’s top 100 financial centers, according to the Global Financial Centres Index.

Hangzhou is classified as a sub-provincial city and forms the core of the Hangzhou metropolitan area, the fourth-largest in China. During the 2010 Chinese census, the metropolitan area held 21.102 million people over an area of 34,585 km2 (13,353 sq mi). Hangzhou Prefecture had a registered population of 10,360,000 in 2019.

Hangzhou has been repeatedly rated as the best commercial city in mainland China by Forbes. Home to the headquarters of world Internet industry leaders such as the Alibaba Group, Hangzhou is known for attracting professionals and entrepreneurs who work in information technology. Since 2014, its rapid population growth has led to a steady increase in local housing prices. According to the 2020 Hurun Global Rich List, Hangzhou ranks 11th in the world and 6th in China (after Beijing, Shanghai, Hong Kong, Shenzhen and Guangzhou) in the number of resident billionaires.

Hangzhou is also one of the world’s top cities for scientific research, ranked 26th globally by the Nature Index as of 2020. It has several major universities, notably Zhejiang University, one of China’s most prestigious universities.

In September 2015, Hangzhou was awarded the 2022 Asian Games. It will be the third Chinese city to host the Asian Games, after Beijing 1990 and Guangzhou 2010. Hangzhou also hosted the 11th G20 summit in 2016.

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The financial stability of Hangzhou 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 Hangzhou

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

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

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

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

Flipping Investment Property in Hangzhou

Flipping property in Hangzhou

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

The Flipping Strategy in Hangzhou

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

What is distressed Hangzhou property:

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

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

Calculate profit that you make from Hangzhou investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Hangzhou

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

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