Expat Housing Guide in Shanghai and Beijing

- Joanna Real Estate

This article gives a summary of housing options available in Shanghai and Beijing and also provides helpful information on searching for apartments as well as how to deal with Chinese landlords.

The Basics

Rental properties in China are owned either by individual landlords or by apartment developers. Properties owned by individual landlords tend to cost 10-20% less than developer-owned properties. One reason is that individual landlords’ properties’ decorations & furniture are not as good as developers which usually are designed & decorated by professional people. Another reason is that individual Chinese landlords usually provide fewer services than developers. The Chinese developers often have people available 24-hours per day to service tenants.

In compounds where individual landlords own the properties, expect that rents on identical properties will vary somewhat.

Negotiating with Chinese Landlords

Negotiating with Chinese landlords can be very difficult for reasons that:

1. Many landlords only speak Chinese.
2. Newly arrived expats who are unfamiliar with the compound and its surroundings are at a disadvantage
3. Asking prices will vary based on the position of the unit within the development, the decorations, timing, and individual characteristics of the landlord.
4. Most expats do not fully understand their leverage points in negotiations.

Before signing any lease, ensure that it includes all points that you and the landlord have agreed upon (such as pets, television service, etc.). Never rely on verbal agreements, which will be difficult to prove in the event of dispute.

Types of Properties Available

Housing options for foreigners in China include both urban style apartments, and freestanding houses (typically referred to as “villas”). Most rental properties in these cities are furnished. Tenants who have their own furniture can attempt to negotiate the landlord’s removal of his furniture.

Shanghai and Beijing offer ample selections of high-end apartment buildings. High-end apartments generally offer the following amenities at a minimum: a clubhouse with gym, car parking, and satellite television.

Serviced apartment are becoming a popular option for many employees of multinationals. Serviced apartments offer housekeeping, concierge services, a modern fitness center, and higher-end furniture and appliances.

Villas are usually situated in compounds. These compounds often have a lot of greenery. Villas are typically built to high standards, and include high-end electrical appliances and furniture. Villa compounds’ management offices usually provide various services, including gardening, housekeeping and maintenance. Many villa compounds are located near foreign schools.

Some expats are interested in living in traditional Chinese buildings. Many such buildings have been recently renovated, but still retain their charming characters. However, these houses tend to have issues with plumbing, electrical systems, and insects. Where tenants live in areas where the adjacent houses or apartments have not been upgraded, the tenants may experience some difficulty in communicating with neighbors. Moreover, there can be occasional privacy issues due to overly-curious neighbors.

Popular Residential Areas in Shanghai

Most expats in Shanghai live in one of the four main areas of the city: Pudong (“Pudong” means east of the Huangpu River), downtown Puxi (“Puxi” means west of the Huangpu River), Hongqiao, and Qingpu.

Expats arriving in Shanghai with families tend to find themselves living in the leafy Pudong district of Jinqiao, or in Qingpu. Both areas have numerous family-friendly compounds with private gardens, and nearby international schools. The main drawback to these areas is they are far from downtown Puxi.

Younger expats or those without families tend to gravitate towards downtown areas of Puxi, close to the bar and restaurant districts. The expat apartment offerings in downtown Puxi range from those with basic amenities to high-end serviced apartments.

Somewhere in between the two options is the Puxi suburb of Hongqiao, which is within convenient reach of downtown. Hongqiao has a number of villa compounds, as well as high-rise apartments. Hongqiao has numerous international schools, and a large dining district.

Popular Residential Areas in Beijing

Beijing is a sprawling city with city planning that is less well-balanced than that of Shanghai. The northeastern portion of the city, called Chaoyang District, is a large business, shopping, entertainment, and diplomatic center. Living in Chaoyang is popular with single expats or those without children.

The area along Jingshun Road is the traditional villa area of Beijing. Jingshun Road connects downtown Beijing and Beijing International Airport. Because of the convenient commute, the villa compounds along Jingshun Road have become the most popular area for expats. Many new luxury apartments are now also available in this area. The area contains many international schools, such as the Deutsche School and the Western Academy of Beijing. Jingshun Road is a good choice for families with children.

Due to the 2008 Olympics, the properties near the National Olympic Sports Center are becoming more popular for expats. This area contains the BISS International School, and the Beijing Oxford Little Professor Kindergarten. It is popular with both single expats and those with families.

Tips for Renting in China

1. Do not decide on properties based only on pictures. Many properties look good on the outside, but are not constructed as well as you would think. Either make a site visit, or have a trusted friend view the property in person.
2. Do not sign a lease for a property before the interior is completely renovated. The finished product may vary from what you had been promised.
3. Do not rent a property in a brand new compound in which many units are undergoing interior renovation. Interior renovation will make for a very noisy apartment building, as sound travels very well through the solid concrete walls of the buildings.
4. Do not provide the landlord or landlord’s representative with your name card or contact information until you move into the property. Otherwise, you might be contacted by numerous salespeople.
5. If this relocation is your first overseas assignment, seek only properties with large numbers of expats. Living in a “local” complex without English language services, and with inevitable cultural / communication issues with your neighbors, will make life that much more complicated for you and your family.

Joanna Real Estate is one of the largest residential real estate consulting companies in China, focused on providing professional Residential Relocation Service to the expatriate communities and outsourcing relocation services for corporate HR departments. For more information, please contact us at: +86-021-52285528 / 52286628; or, This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Please visit our website: www.joannarealestate.com.cn.

 

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