Renting v.s. Buying:: Shanghai v.s. Hawaii
I am shopping for office space in Shanghai recently. My assitant helped me to search on classifieds online and call the real estate agents. The results I got were very much matched what I have learned about the market.
This is an very famous and popular map about Shanghai real estate buying price by Metro station. The office rental price is quite match to the price range of the residental real esate price.
(Thanks MadaboutShangai for the image, click for larger view)
For example, we are looking for a 25 sqr meter room for 4 people, the prices of buying in different districts are:
- Huangpu (pink area in the center of the map): RMB 5,500/month
- Luwan ( light blue area in the center of the map, next to Huangpu): > RMB 6,000/month
- JingAn (yellow area in the center of the map): RMB 5,500/month
- Pudong Center Park (the middle of Pudong alone Metro Line 2): RMB 2,000/month
So, what about the number in residentail rental? Take my apartment as an example: 60 sqr meter in Changning disctict which is to the west of JingAn disctrict; 15 mins walk to a Metro station.
- Renting: 3000 RMB/month;
- Buying: 20,000RMB/sqr meter (living area)
According to the government data, the average monthly salary in Shanghai in 2006 is RMB 2464.
So, can you figure out how much you need to make to buy a real estate in Shanghai? Or how about in Hawaii? Or San Francisco Bay area. Reading the news about Hawaii real estate, the sales volumn of the condos in Big Island has increased from 5.29% to 32.43% in 2007 compared to 2006. I did a search on Maui MSL to check out the price to buy there: the lowest rate it shows is USD 295,000 for 974 sqr feet living area. This could be translated to RMB as 22,000/sqr meter – approximately the same as my apartment. Though you won’t have a big yard in Shanghai.
Tags: Shanghai Life
Grigo
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