Investment Property in Kunming

Investment Real Estate in Kunming

Investment Property in Kunming
Investment Property in Kunming

Kunming 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 Kunming.

Search Map of Kunming Investment Real Estate

Kunming (; Chinese: 昆明; pinyin: Kūnmíng), also known as Yunnan-Fu, is the capital and largest city of Yunnan province, China. It is the political, economic, communications and cultural centre of the province as well as the seat of the provincial government. The headquarters of many of Yunnan’s large businesses are in Kunming. It was important during World War II as a Chinese military center, American air base, and transport terminus for the Burma Road. In the middle of the Yunnan–Guizhou Plateau, Kunming is at an altitude of 1,900 metres (6,234 feet) above sea level and a latitude just north of the Tropic of Cancer. As of 2020 census, Kunming had a total population of 8,460,088 inhabitants, of whom 5,604,310 lived in its built-up (or metro) area made of all urban districts but Jinning, not conurbated yet. It is at the northern edge of Dian Lake, surrounded by temples and lake-and-limestone hill landscapes.

Kunming consists of an old, previously walled city, a modern commercial district, residential zones and university areas. It is also one of the top 200 cities in the world by scientific research output. The city has an astronomical observatory, and its institutions of higher learning include Yunnan University, Kunming University of Science and Technology, Yunnan University of Finance and Economics, Kunming Medical University, Yunnan Normal University, Yunnan Agricultural University and Southwest Forestry University. On the northeast mountainous outskirt is a bronze temple dating from the Ming dynasty, the largest of its kind in China.

Kunming’s economic importance derives from its geographical position. It is near the border with Southeastern Asian countries, serving as a transportation hub in Southwest China, linking by rail to Vietnam and by road to Burma, Laos and Thailand. This positioning also makes it an important trade center in the region. As a gateway to Southeast Asia and South Asia, the Kunming Changshui International Airport is one of the top 40th-busiest airports in the world. Kunming also houses some manufacturing, chiefly the processing of copper, as well as various chemicals, machinery, textiles, paper and cement. Kunming has a nearly 2,400-year history, but its modern prosperity dates only to 1910, when the railway from Hanoi was built. The city has continued to develop rapidly under China’s modernization efforts. Kunming’s streets have widened while office buildings and housing projects develop at a fast pace. Kunming has been designated a special tourism center and as such sports a proliferation of high-rises and luxury hotels.

Get Our Latest List of Investment Property in Kunming

The financial stability of Kunming 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 Kunming

 

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

 

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

 

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

Flipping property in Kunming

 

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

 

The Flipping Strategy in Kunming

 

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

 

What is distressed Kunming property:

 

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

 

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

 

Calculate profit that you make from Kunming investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kunming 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 Kunming use a minimum profit value of 22% when looking at potential Kunming projects. The reason for this is because there are lots that can go wrong in Kunming 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 Kunming 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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