Advice of Leasing (return)
Types of housing in Shanghai

TYPES OF HOUSING

Restricted areas

Foreigners are able to live anywhere in Shanghai expect some areas close to government official’s houses. Foreign diplomats do have restrictions placed on where they are allowed to live as there are many government properties around the city. Also, you don’t need a residence permit to sign a lease and any kind of visa is acceptable.

Developer compounds

Developer’s developments are built by one company and the apartment or villa is fitted out and furnished in a certain décor. The décor and furniture is generally designed by an interior designed so is tasteful and of high quality.

All developer housing is available to all agents and there are no “sole agencies” on developer housing in Shanghai. Most expatriate agents have a good relationship with developer housing management. The final decision for accepting an offer from a tenant is based on the terms and conditions of the contract.

Since the growth in quality local housing in the past couple of years developer compounds have had more competition than in the past and have been forced to drop their rental prices. New local housing developments are also attracting more overseas investors who tend to produce a high standard of property. Another factor in rental reductions is that some expatriate’s housing packages are being reduced or removed completely.

Local housing compounds

Local housing developments are built by developers and sold for either owner occupied housing or leased out. The apartment or villa is sold as an empty shell and decorated and furnished to their own taste. The owner either lives in it our rents it out. Higher quality local housing is sold with a standard basic fit out (usually kitchens and bathrooms) and decorated and furnished to the owner’s own taste.

Private landlords are free to list their property with any agency they wish. Often they will send information on their property to all expatriates agents in Shanghai for their database. Many expatriate agents have a large selection of local housing but good ones are limited. Unfortunately, some good quality properties are sitting on the books of local agents who don’t market to expatriates.

Local housing rents out for under 8,000rmb per month. Whilst there is a huge supply of local housing, good quality lower end properties are hard to find. Some expatriate agents don’t deal in local housing as good quality properties are hard to find, leased out quickly and the commission doesn’t provide as high a return on investment as developer compounds do.

Pros & cons of local housing

Some of the benefits are

• lower rentals than developer compounds
• wide selection to choose from
• located in all areas of Shanghai
• local neighborhoods

Some disadvantages are:

• Lack of English speaking, service orientated management
• Few or no onsite facilities such as health clubs, tennis courts and playgrounds.
• If facilities are onsite they are not of high standard
• No or few satellite TV stations
• Poor quality and unattractive fit outs and furnishings
• Smaller in size

ASKING RENTALS

Expat Apartments

$1,000 - 2,200 (lower price)

$2,200 - 4,500  (medium price)

$4,500 - 12,000  (high price)

Expat Villas

$3,000 - 4,750 (lower price)

$4,750 - 6,500 (medium price)

$6,500 - 15,000 (high price)

FREE PROPERTY SEARCH

If you need a Free Property Search some advice on your lease, please feel free to call us at 5273 0703 or 5273 0705 or after hours on 13122 810 421 or send us an email at info@shanghaiprops.com. Webb: http://www.shanghaiprops.com

Real Estate Trivia

The floors of buildings are called stories because early European builders used to paint picture stories on the sides of their houses. Each floor had a different story.

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