Investment Property in Shenzhen

Investment Real Estate in Shenzhen

Shenzhen 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 Shenzhen.

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Search Map of Shenzhen Investment Real Estate

Shenzhen (; Chinese: 深圳; Mandarin pronunciation: [ʂə́n.ʈʂə̂n] (listen), formerly romanized as Sham Chun) is a major sub-provincial city on the east bank of the Pearl River estuary on the central coast of southern province of Guangdong, China. It forms part of the Pearl River Delta megalopolis, bordering Hong Kong to the south, Huizhou to the northeast and Dongguan to the northwest, and shares maritime boundaries with Guangzhou, Zhongshan and Zhuhai to the west and southwest across the estuary.

Shenzhen’s cityscape results from its vibrant economy—made possible by rapid foreign direct investment (FDI) following the institution of the policy of “reform and opening-up” in 1979. Shenzhen roughly follows the administrative boundaries of Bao’an County, officially became a city in 1979, taking its name from the former county town, whose train station was the last stop on the Mainland Chinese section of the railway between Canton and Kowloon. In 1980, Shenzhen was established as China’s first special economic zone. The city is a leading global technology hub, dubbed by media China’s Silicon Valley. It was one of the fastest-growing cities in the world in the 1990s and the 2000s. Shenzhen’s registered population as of 2017 was estimated at 12,905,000, but local police and authorities estimate the real population at about 20 million, due to large populations of short-term residents, unregistered floating migrants, part-time residents, commuters, visitors, as well as other temporary residents.

Shenzhen is ranked as an Alpha- (global first-tier) city by the Globalization and World Cities Research Network. Shenzhen is a leading financial centre in the Asia-Pacific region and ranked as having the 8th most competitive and largest financial center in the world in the 2021 Global Financial Centres Index. Shenzhen has the fourth-highest number of billionaires of any city in the world (after Beijing, Shanghai and New York City). It has the third busiest container port in the world. Shenzhen’s high port traffic levels combined with a high urban population make Shenzhen a Large-Port Megacity, the largest type of port-city in the world. Shenzhen has been ranked second on the list “top 10 cities to visit in 2019” by Lonely Planet. The city hosts the Shenzhen Stock Exchange as well as the headquarters of numerous multinational companies such as JXD, Vanke, Hytera, CIMC, SF Express, Shenzhen Airlines, Nepstar, Hasee, Ping An Bank, Ping An Insurance, China Merchants Bank, Evergrande Group, Tencent, ZTE, OnePlus, Huawei, DJI and BYD. Shenzhen is an international hub of research and innovation in China and ranks 32nd globally by scientific research outputs as tracked by the Nature Index. The city is home to several notable institutes, such as Shenzhen University and Southern University of Science and Technology.

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The financial stability of Shenzhen 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 Shenzhen

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

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

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

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

Flipping Investment Property in Shenzhen

Flipping property in Shenzhen

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

The Flipping Strategy in Shenzhen

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

What is distressed Shenzhen property:

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

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

Calculate profit that you make from Shenzhen investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Shenzhen

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

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