Real Estate: Apartments & Office Space in Qingdao
Qingdao Residential Real Estate - Apartment, Flat, Villa, & Duplex Rentals
In July 2006, the Ministry of Construction issued a statement requiring foreigners to live in China for at least a year before being allowed to buy a house. As of January 2007, foreigners looking to buy residential property (Apartments, Villas, & Duplexes) in Qingdao also require a residential status certificate also known as a Z visa. However, if you are willing to pay cash upfront, officials have indicated that a Z visa is not required.
The government has also clamped down on overseas Chinese residents, including those from Taiwan Province, Hong Kong, and Macao special administrative regions, as well as Chinese living abroad from buying property on the mainland. Overseas Chinese residents also now require a signed testimony saying they will live in the house and not rent it out or sell it. Despite the new regulations, foreign investors (both commercial and private) remain hungry for a piece of China's real estate market, especially in cities like Qingdao.
Qingdao Residential Real Estate Financing - Apartments, Flats, Villas, & Duplexes
As a foreigner, if you already have a Z visa (residence permit) and have resided in Qingdao for more than a year you can apply for a loan to buy an Apartment, Villa, or Duplex. Qingdao foreign expats are required to put down at least 50% and pay a bank guarantee of 0.003%-0.005% to get a loan for residential real estate. The loan needs to paid in full before the expiration date of your passport. Interest rates vary depending upon lender; the average interest rate is 6.65% for 1-3 years, 6.90% for 3-5 years and 7.05% for more than 5 years. Keep in mind that you will not be able to purchase farm land or land that does not already have a residence on it.
Taxes and fees for buying property in Qingdao:
For new property, the title deed tax is 1% for property under/equal 90 Sqm, 1.5% for 90-144 Sqm and 3% for more than 144 Sqm. Commercial real estate tax is 3%.
Taxes and fees for buying second hand property in Qingdao:
(1) The buyers do not need to pay tax if the property is more than 5 years old and under 144 Sqm.
(2) The buyers need to pay 5.6% tax if the property is less than 5 years or more than 144 Sqm.
Qingdao Commercial Real Estate - Office Space, Retail Space, & Warehouse Rentals
Limitless, a unit of Dubai World, and its subsidiary in Hong Kong, has pulled out of developing XiaoMai Island in Qingdao. The original bid at a price of 4.368 billion CNY is expected to be surpassed at the next auction to sell the construction rights. XiaoMaiDao is located east of YinHai International Yacht Club (the training base for 2008 Olympic Sailing events).