Investment Property in Hangzhou

Investment Real Estate in Hangzhou

Investment Property in Hangzhou
Investment Property in Hangzhou

Hangzhou 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 Hangzhou.

Search Map of Hangzhou Investment Real Estate

Hangzhou ( or /hæŋˈ/, HANG-joe; Chinese: 杭州, Hangzhounese pronunciation: [ɦɑ̃.tse], Standard Mandarin pronunciation: [xǎŋ.ʈʂóʊ] (listen)), also romanized as Hangchow, is the capital and most populous city of Zhejiang, China. It is located in the northwestern part of the province, sitting at the head of Hangzhou Bay, which separates Shanghai and Ningbo. Hangzhou grew to prominence as the southern terminus of the Grand Canal and has been one of China’s most renowned and prosperous cities for much of the last millennium. It is a major economic and e-commerce hub within China, and the second biggest city in Yangtze Delta after Shanghai. Hangzhou is classified as a sub-provincial city and forms the core of the Hangzhou metropolitan area, the fourth-largest in China after Guangzhou-Shenzhen Pearl River agglomeration, Shanghai-Suzhou-Wuxi-Changzhou conurbation and Beijing. As of 2019, the Hangzhou metropolitan area was estimated to produce a gross metropolitan product (nominal) of 3.2 trillion yuan ($486.53 billion), making it larger than the economy of Nigeria (the largest in Africa). As of the 2020 Chinese census, it had a total population of 11,936,010 inhabitants. However, its metropolitan area, populated by 13.035 million people over an area of 8,107.9 km2 (3,130.5 sq mi), consists of all urban districts in Hangzhou and 3 urban districts of the city of Shaoxing.

Hangzhou has been repeatedly rated as the best commercial city in mainland China by Forbes and the Chinese city with the highest growth potential by the Economist Intelligence Unit, and it boasts the eighth largest GDP among cities in mainland China with a GDP of around 1.8 trillion RMB ($280 billion). Home to the headquarters of large global tech companies such as the Alibaba Group, Ant Group and NetEase, Hangzhou is known for attracting professionals and entrepreneurs who work in information technology. Since 2014, its rapid population growth has led to a steady increase in local housing prices. According to the 2020 Hurun Global Rich List, Hangzhou ranks 11th in the world and 6th in China (after Beijing, Shanghai, Hong Kong, Shenzhen and Guangzhou) in the number of resident billionaires.

Hangzhou is a major city for scientific research in the Asia-Pacific, ranking 19th globally by scientific outputs. It hosts several notable universities, including Zhejiang, Zhejiang University of Technology, Hangzhou Normal, Hangzhou Dianzi, Zhejiang A&F, Zhejiang Sci-Tech, Zhejiang Chinese Medical, Westlake, China Jiliang and Zhejiang University of Finance and Economics. In September 2015, Hangzhou was awarded the 2022 Asian Games. Its West Lake, a UNESCO World Heritage Site west of the city, is among its best-known attractions. A study conducted by PwC and China Development Research Foundation ranked Hangzhou first among “Chinese Cities of Opportunity”. According to the Globalization and World Cities Research Network (GaWC), the city is classified as Beta (global second-tier) city, together with Chongqing, Nanjing and Tianjin in China. Hangzhou is also one of the world’s top 100 financial centers, according to the Global Financial Centres Index. It will be the third Chinese city to host the Asian Games, after Beijing 1990 and Guangzhou 2010. Hangzhou also hosted the 11th G20 summit in 2016.

Get Our Latest List of Investment Property in Hangzhou

The financial stability of Hangzhou 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 Hangzhou

 

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

 

Whatever your goals with investment property in Hangzhouare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Hangzhou and be prepared to change your initial outlook.
  • Thoroughly research the Hangzhou location with a special emphasis on fringe areas outside the main Hangzhou metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Hangzhou.
  • Ensure that your target investment property in Hangzhou 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 with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Hangzhou

Flipping property in Hangzhou

 

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

 

The Flipping Strategy in Hangzhou

 

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

 

What is distressed Hangzhou property:

 

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

 

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

 

Calculate profit that you make from Hangzhou investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

 

Property Secured Investments is a Private Equity fund that invests in Hangzhou and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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