Investment Property in Qingdao

Investment Real Estate in Qingdao

Investment Property in Qingdao
Investment Property in Qingdao

Qingdao 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 Qingdao.

Search Map of Qingdao Investment Real Estate

Qingdao (, also spelled Tsingtao; Chinese: 青岛, Mandarin: [tɕʰíŋtàʊ]) is a major city in eastern Shandong Province. The city’s name in Chinese characters literally means “azure island”. Located on China’s Yellow Sea coast, it is a major nodal city of the One Belt, One Road (OBOR) Initiative that connects Asia with Europe. It has the highest GDP of any city in the province. Administered at the sub-provincial level, Qingdao has jurisdiction over seven districts and three county-level cities (Jiaozhou, Pingdu, Laixi). As of the 2020 census, Qingdao built-up (or metro) area made of the 7 urban Districts (Shinan, Shibei, Huangdao, Laoshan, Licang, Chengyang and Jimo) was home to 7,172,451 inhabitants. Lying across the Shandong Peninsula and looking out to the Yellow Sea, it borders the prefecture-level cities of Yantai to the northeast, Weifang to the west and Rizhao to the southwest.

Qingdao is a major seaport and naval base, as well as a commercial and financial center. It is home to electronics multinationals such as Haier and Hisense. The Jiaozhou Bay Bridge, links the main urban area of Qingdao with Huangdao district, straddling the Jiaozhou Bay sea areas. Its historic German-style architecture and Tsingtao Brewery, the second largest brewery in China are legacies of the German occupation (1898-1914).
Qingdao is classified as a Large-Port Metropolis.

In the 2020 Global Financial Centers Index, Qingdao ranked 47th; the index is published by the Z/Yen Group and China Development Institute, the other Chinese cities on the list being Shanghai, Hong Kong, Beijing, Shenzhen, Guangzhou, Chengdu, Nanjing, Xi’an, Tianjin, Hangzhou, Dalian, and Wuhan. In 2007, Qingdao was named as one of China’s top ten cities by the Chinese Cities Brand Value Report, which was released at the 2007 Beijing Summit of China Cities Forum. In 2009, Qingdao was named China’s most livable city by the Chinese Institute of City Competitiveness. In 2018, Qingdao held the Shanghai Cooperation Organisation summit. In 2020, Qingdao was rated as a Gamma+ level global city by the Globalization and World Cities Research Network.

Qingdao is also one of the world’s top 80 cities for global scientific research as tracked by the Nature Index. The city is home to several notable universities, including the Ocean University of China, China University of Petroleum, Shandong University of Science and Technology, Qingdao, Qingdao University of Science and Technology Qingdao University of Technology, and Qingdao Agricultural.

Get Our Latest List of Investment Property in Qingdao

The financial stability of Qingdao 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 Qingdao

 

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

 

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

 

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

Flipping property in Qingdao

 

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

 

The Flipping Strategy in Qingdao

 

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

 

What is distressed Qingdao property:

 

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

 

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

 

Calculate profit that you make from Qingdao investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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