Investment Property in Beijing

Investment Real Estate in Beijing

Investment Property in Beijing
Investment Property in Beijing

Beijing 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 Beijing.

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Search Map of Beijing Investment Real Estate

Beijing ( BAYJING Mandarin pronunciation: [pèi.tɕíŋ] (About this soundlisten)), alternatively romanized as Peking ( pee-KING), is the capital of the People’s Republic of China. It is the world’s most populous national capital city, with over 21 million residents within an administrative area of 16,410.5 km2 (6336 sq. mi.). It is located in Northern China, and is governed as a municipality under the direct administration of the State Council with 16 urban, suburban, and rural districts. Beijing is mostly surrounded by Hebei Province with the exception of neighboring Tianjin to the southeast; together, the three divisions form the Jingjinji megalopolis and the national capital region of China.

Beijing is a global city and one of the world’s leading centres for culture, diplomacy and politics, business and economics, education, language, and science and technology. A megacity, Beijing is the second largest Chinese city by urban population after Shanghai and is the nation’s cultural, educational, and political center. It is home to the headquarters of most of China’s largest state-owned companies and houses the largest number of Fortune Global 500 companies in the world, as well as the world’s four biggest financial institutions by total assets. Beijing is the “billionaire capital of the world” with the highest number of billionaires living in the city. It is also a major hub for the national highway, expressway, railway, and high-speed rail networks. The Beijing Capital International Airport has been the second busiest in the world by passenger traffic since 2010, and, as of 2016, the city’s subway network is the busiest and longest in the world. The Beijing Daxing International Airport, a second international airport in Beijing, is the largest single-structure airport terminal in the world.

Combining both modern and traditional style architectures, Beijing is one of the oldest cities in the world, with a rich history dating back three millennia. As the last of the Four Great Ancient Capitals of China, Beijing has been the political center of the country for most of the past eight centuries, and was the largest city in the world by population for much of the second millennium AD. With mountains surrounding the inland city on three sides, in addition to the old inner and outer city walls, Beijing was strategically poised and developed to be the residence of the emperor and thus was the perfect location for the imperial capital. The city is renowned for its opulent palaces, temples, parks, gardens, tombs, walls and gates. It has seven UNESCO World Heritage Sites—the Forbidden City, Temple of Heaven, Summer Palace, Ming Tombs, Zhoukoudian, and parts of the Great Wall and the Grand Canal—all of which are popular tourist locations. Siheyuans, the city’s traditional housing style, and hutongs, the narrow alleys between siheyuans, are major tourist attractions and are common in urban Beijing.

Many of Beijing’s 91 universities consistently rank among the best in the Asia-Pacific and the world. Beijing is home to the two best C9 League universities (Tsinghua and Peking) in the Asia-Pacific and emerging countries. Beijing CBD is a center for Beijing’s economic expansion, with the ongoing or recently completed construction of multiple skyscrapers. Beijing’s Zhongguancun area is a world leading center of scientific and technological innovation as well as entrepreneurship. Beijing has been ranked the No.1 city in the world with the largest scientific research output as tracked by the Nature Index since 2016. The city has hosted numerous international and national sporting events, the most notable being the 2008 Summer Olympics and 2008 Summer Paralympics Games. Beijing will become the first city ever to host both the Summer and Winter Olympics, and also the first city ever to host both the Summer and Winter Paralympics. Beijing hosts 175 foreign embassies as well as the headquarters of the Asian Infrastructure Investment Bank (AIIB), the Shanghai Cooperation Organisation (SCO) and the Silk Road Fund.

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The financial stability of Beijing 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 Beijing

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

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

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

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

Flipping Investment Property in Beijing

Flipping property in Beijing

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

The Flipping Strategy in Beijing

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

What is distressed Beijing property:

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

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

Calculate profit that you make from Beijing investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Beijing

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

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