Investment Property in Chengdu

Investment Real Estate in Chengdu

Investment Property in Chengdu
Investment Property in Chengdu

Chengdu 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 Chengdu.

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Search Map of Chengdu Investment Real Estate

Chengdu (Sichuanese pronunciation: [tsʰən˨˩tu˥], Standard Mandarin pronunciation: [ʈʂʰə̌ŋ.tú] (About this soundlisten), , US: /ˌtʃʌŋ-/), alternatively romanized as Chengtu, is a sub-provincial city which serves as the capital of the Chinese province of Sichuan. It is one of the three most-populous cities in Western China, the other two being Chongqing and Xi’an. As of 2014, the administrative area housed 14,427,500 inhabitants, the largest in Sichuan, with an urban population of 10,152,632. At the time of the 2010 census, Chengdu was the fifth-most populous agglomeration in China, with 10,484,996 inhabitants in the built-up area including Xinjin County and Deyang’s Guanghan City. Chengdu is considered a World City with a “Beta +” classification (together with Barcelona and Washington, D.C.) according to the Globalization and World Cities Research Network. In 2020, Chengdu ranked 43rd in the Global Financial Centres Index.

Chengdu is located in central Sichuan. The surrounding Chengdu Plain is known as the “Country of Heaven” (Chinese: 天府之国; pinyin: Tiānfǔ zhi Guó) and the “Land of Abundance”. Its prehistoric settlers included the Sanxingdui culture. The site of Dujiangyan, an ancient irrigation system, is designated as a World Heritage Site. The Jin River flows through the city.

Founded by the state of Shu prior to its incorporation into China, Chengdu is unique as a major Chinese settlement that has maintained its name mostly unchanged throughout the imperial, republican, and communist eras. It was the capital of Liu Bei’s Shu Han during the Three Kingdoms Era, as well as several other local kingdoms during the Middle Ages. During World War II, refugees from eastern China fleeing from the Japanese settled in Chengdu. After the war, Chengdu’s importance as a link between Eastern and Western China expanded, with railways built to Chongqing in 1952, and Kunming and Tibet afterwards. In the 1960s, Chengdu became an important centre of China’s national defense industry.

Chengdu is now one of the most important economic, financial, commercial, cultural, transportation, and communication centers in Western China. Its economy is diverse, characterized by the machinery, automobile, medicine, food, and information technology industries. Chengdu Shuangliu International Airport, a hub of Air China and Sichuan Airlines, is one of the 30 busiest airports in the world, and the Chengdu railway station is one of the six biggest in China. Chengdu also hosts many international companies and more than 12 consulates; more than 270 Fortune 500 companies have established branches in Chengdu. Chengdu is the seat of the Western Theatre Command region of the People’s Liberation Army. Chengdu will host the FISU Summer World University Games in 2021, an international multi-sport event. It is considered one of the most livable cities in China.

Chengdu’s culture largely reflects that of its province, Sichuan; in 2011, it was recognized by UNESCO as a city of gastronomy. It is associated with the giant panda, a Chinese national symbol, which inhabits the area of Sichuan; the city is home to the Chengdu Research Base of Giant Panda Breeding.

Chengdu is one of the world’s top 40 cities by scientific research output. The city is home to the greatest number of universities and research institutes in Southwestern China, notably Sichuan University, University of Electronic Science and Technology of China, Southwestern University of Finance and Economics and Southwest Jiaotong University.

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The financial stability of Chengdu 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 Chengdu

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

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

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

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

Flipping Investment Property in Chengdu

Flipping property in Chengdu

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

The Flipping Strategy in Chengdu

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

What is distressed Chengdu property:

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

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

Calculate profit that you make from Chengdu investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Chengdu

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

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