Investment Property in Guangzhou

Investment Real Estate in Guangzhou

Guangzhou 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 Guangzhou.

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Search Map of Guangzhou Investment Real Estate

Guangzhou (; Chinese: 广州, Cantonese pronunciation: [kʷɔ̌ːŋ.tsɐ̂u] or [kʷɔ̌ːŋ.tsɐ́u] (listen); Mandarin pronunciation: [kwàŋ.ʈʂóu] (listen)), also known as Canton and alternately romanized as Kwangchow, is the capital and most populous city of the province of Guangdong in southern China. Located on the Pearl River about 120 km (75 mi) north-northwest of Hong Kong and 145 km (90 mi) north of Macau, Guangzhou has a history of over 2,200 years and was a major terminus of the maritime Silk Road, and continues to serve as a major port and transportation hub, as well as one of China’s three largest cities. Long the only Chinese port accessible to most foreign traders, Guangzhou was captured by the British during the First Opium War. No longer enjoying a monopoly after the war, it lost trade to other ports such as Hong Kong and Shanghai, but continued to serve as a major transshipment port. Due to a high urban population and large volumes of port traffic, Guangzhou is classified as a Large-Port Megacity, the largest type of port-city in the world.

Guangzhou is at the heart of the most-populous built-up metropolitan area in mainland China, which extends into the neighboring cities of Foshan, Dongguan, Zhongshan, Shenzhen and part of Jiangmen, Huizhou, Zhuhai and Macao, forming the largest urban agglomeration on Earth with more than 46.7 million inhabitants and part of the Pearl River Delta Economic Zone. Administratively, the city holds subprovincial status and is one of China’s nine National Central Cities. In the late 1990s and early 2000s, nationals of sub-Saharan Africa who had initially settled in the Middle East and Southeast Asia moved in unprecedented numbers to Guangzhou in response to the 1997/98 Asian financial crisis. The domestic migrant population from other provinces of China in Guangzhou was 40% of the city’s total population in 2008. Together with Shanghai, Beijing and Shenzhen, Guangzhou has one of the most expensive real estate markets in China. At the end of 2018, the population of the city’s expansive administrative area was estimated at 14,904,400 by city authorities, up 3.8% from the previous year. There is a rapidly increasing number of foreign temporary residents and immigrants from Southeast Asia, the Middle East, Eastern Europe and Africa. This recent population influx has led to it being dubbed the “Capital of the Third World”.

Nowadays in modern commerce, Guangzhou is best known for its annual Canton Fair, the oldest and largest trade fair in China. For three consecutive years (2013–2015), Forbes ranked Guangzhou as the best commercial city in mainland China. Guangzhou is highly ranked as an Alpha- (global first-tier) city together with San Francisco and Stockholm. Guangzhou also ranks 21st globally and 8th in the whole Asia and the Pacific (behind Shanghai, Tokyo, Hong Kong, Singapore, Beijing, Shenzhen and Dubai) in the 2020 Global Financial Centers Index (GFCI). Guangzhou ranks 10th in the world and 5th in China (after Beijing, Shanghai, Hong Kong and Shenzhen) in terms of the number of billionaires according to the Hurun Global Rich List 2020.

The city is home to many of China’s most prestigious universities, including Sun Yat-sen University, South China University of Technology, South China Normal University and Jinan University. Guangzhou is also one of the top cities in the world by scientific research outputs as tracked by the Nature Index and it ranks 15th globally and fifth in China (after Beijing, Shanghai, Nanjing and Wuhan).

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The financial stability of Guangzhou 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 Guangzhou

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

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

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

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

Flipping Investment Property in Guangzhou

Flipping property in Guangzhou

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

The Flipping Strategy in Guangzhou

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

What is distressed Guangzhou property:

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

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

Calculate profit that you make from Guangzhou investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Guangzhou

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

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