Buy a House or Rent a House in Shanghai China

The biggest news in China in March is new tighten measures for real estate. Because of the burst of real estate price in January and February, Chinese government announced a new property policy to cool down the property market. For me, it is very important. If the price of real estate keeps increasing, young people like me will never be able to buy a house in Shanghai.

No one knows if the new policy will take effect in the future. But the reality is that the price of both second hand aparement and new aparement is increased by 2% to 3% against February in the following month. Actually, I don’t believe that the government wants to make the property price reduced. Contrast with the new policy to tighten property price in Singapore, the policy in Shanghai is too soft.

Is the real estate price high in Shanghai?

There are two facts can tell us why property price in Shanghai is not normal. First, the property price in Shanghai is quite high against the local wage. The property price in Shanghai is almost the same as it in Singapore. Some properties in centre localtion are more expensive. However, the average wage in Singapore is two times higher.

Second, the rental can also tell us the truth. The rental in Shanghai is much lower than that in Singapore. Why? The reason is very clear. People working in Shanghai cannot afford the high rental. Normally, the rental can cover the mortgage or most of it. But rental in Shanghai is not enough. I rent a very small room in Singapore. My rental is $580 SGD, around $3000 China Yuan. With the same money, I can rent a big apartment with two rooms near the centre location.

How to Rent a Cheap Apartment in Shanghai

As a foreigner working in Shanghai, renting an apartment is the first problem. If you try to find an apartment by yourself, the landlord will normally give you a bit high price. Because you are foreigner, he will suppose that you have a high wage in Shanghai and you will be able to afford the price. Hence, the best way to rent a house is asking for help to your local friends.

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