Buy House in Hangzhou FAQ

Buying an Apartment in Hangzhou as a Foreigner: Your FAQ Guide

Navigating the Chinese real estate market as a foreigner can be complex due to evolving regulations and local nuances. Here's what you need to know about purchasing an apartment in Hangzhou.

Q1: Can foreigners actually buy apartments in Hangzhou?

A: Yes, generally. Foreigners are permitted to buy residential property in Hangzhou. However, there are specific eligibility requirements and restrictions you must meet.

Q2: What are the main eligibility requirements for foreigners to buy property in Hangzhou?

A: As of mid-2025, the key requirements for Hangzhou are:

• Residency: You must work or study in Hangzhou and hold a valid resident permit in Hangzhou. Unlike some other cities (like Shanghai or Beijing) there is no specific minimum period of work or study required (e.g., one year or five years). This makes Hangzhou relatively more accessible in terms of residency duration.

• Purpose of Purchase: The property must be for self-occupation (personal dwelling purposes).

• One Property Limit: You are generally limited to purchasing only one residential property in China. This applies across the country, not just Hangzhou.

• No Other Property in China: You and your immediate family (spouse and minor children) must not own any other property in China when making the purchase.

Q3: Can I rent out the apartment I buy in Hangzhou?

A: No, generally not for residential properties. Foreigners who purchase residential property in China for personal dwelling purposes are typically not permitted to rent out the property or act as a landlord. This is a crucial restriction that differentiates foreign residential purchases from investment properties.

Q4: Do foreigners own the land when they buy an apartment in China?

A: No, foreigners cannot own land in China. All land in China is owned by the state or collectives. When you "buy" an apartment, you are actually purchasing the building structure and acquiring a "land use right" (LUR) from the government for a specific term. For residential property, this term is typically 70 years.

Q5: What happens after the 70-year land use right expires?

A: While the legal procedures for automatic renewal are not yet fully legislated, the general understanding is that the land use rights for residential properties will be automatically renewed at the end of the 70-year term. However, the exact terms of renewal (e.g., potential fees) might be subject to future regulations.

Q6: What's the process for buying an apartment in Hangzhou as a foreigner?

A: The general process involves several steps, with some unique requirements for foreigners:

1. Obtain Proof of Residence: Get proof of your work/study and residency in Hangzhou from the local Municipal Bureau of Public Security.

2. Property Search: Find a suitable apartment, often with the help of a reputable local real estate agent.

   • New vs. Second-hand: For brand new properties from a developer, ensure the compound has a license for selling to foreigners. For second-hand properties, no such license is needed.

3. Negotiate and Sign Preliminary Agreement: Make an offer and, if accepted, sign a preliminary agreement and pay a deposit (around 1% of the selling price).

4. Draft and Sign Official Sale Contract: Work with the seller to draft the formal sale and purchase agreement.

5. Notarization and Government Approval (Crucial for Foreigners): The signed contract must be notarized and then submitted to your local Foreign Office for government approval. This is a mandatory step for foreign buyers.

6. Police Registration: You should also register the contract with your local police station.

7. Title Transfer: Visit the Deed and Title Transferring Office to transfer the title deed from the seller to you.

8. Obtain Ownership Certificate: After a few weeks, you will receive your official Ownership Certificate.

Q7: What are the typical costs and taxes involved in buying an apartment in Hangzhou?

A: Be prepared for various fees and taxes:

• Deed Tax: Typically 3-6% of the selling price, varies by location and property type.

• Transfer Fees: Around 0.5%.

• City Maintenance and Construction Tax: Around 7%.

• Notarization Fees: Approximately 0.1-0.3%.

• Legal Fees: If you hire a lawyer (highly recommended), expect 3-4% of the property value.

• Real Estate Agent Commission: Usually 1-3% (often paid by the seller, but confirm locally).

• Total Buyer Transaction Costs: Can add up to approximately 8-11% of the property's value.

Q8: Can I get a mortgage from a Chinese bank as a foreigner?

A: It's possible, but challenging. While some Chinese banks may offer mortgages to foreign passport holders, the requirements are strict, and you'll typically need a significant down payment (often 30-50% or even higher). It's advisable to consult directly with local financial institutions.

Q9: What's the current outlook for the Hangzhou property market in 2025?

A: The Chinese property market, including Hangzhou, is currently undergoing significant adjustments.

• Overall Market: As of mid-2025, China's property market is experiencing weakening sales momentum. Many cities are still seeing price declines, especially for second-hand homes.

• Hangzhou Specifics: Recent data (March 2025) shows that Hangzhou's newly constructed residential property price index (for 90-144 sq m) was at 99.500 (Previous Year=100), indicating a slight year-on-year decrease but a marginal increase from the previous month. This suggests some stabilization in new home prices compared to some other cities.

• Policy Support: The central government has introduced various stimulus measures to stabilize the market. Market observers are anticipating further policy support, which could influence price trends later in 2025 and into 2026.

• Investment Perspective: Analysts suggest that while Tier 1 and some leading Tier 2 cities (like Hangzhou) might experience a milder price correction and stabilize by 2026, lower-tier cities could face a more extended downturn. For investment purposes, the restriction against renting out residential property for foreigners is a major consideration.

Q10: What are the biggest risks for foreigners buying property in Hangzhou?

A: Key risks include:

• Evolving Regulations: China's property regulations can change. It's crucial to stay informed and get up-to-date legal advice.

• Land Use Rights: Not owning the land is a fundamental difference from many Western countries.

• Liquidity: Reselling property, especially in a cooling market, can be challenging.

• Repatriation of Funds: Converting and transferring sale proceeds out of China can involve specific regulations and potential hurdles.

• No Rental Income: If your primary goal is investment income through rent, a residential purchase is not suitable.

• Language and Cultural Barriers: Navigating the legal and transactional aspects without professional help can be extremely difficult.

Q11: Should I hire a lawyer or real estate agent?

A: Absolutely, yes for both.

• Real Estate Agent: A reputable local agent who understands foreign buyer requirements can help you find suitable properties and guide you through the initial stages.

• Property Lawyer: A local property lawyer (preferably one with experience assisting foreign clients) is essential for due diligence, ensuring the legality of the contract, verifying all documents, understanding the specific local rules in Hangzhou, and navigating the government approval process. This is the single most important professional you should engage.

Disclaimer: This FAQ provides general information based on current knowledge as of July 2025. Chinese real estate laws and regulations, particularly for foreigners, can change frequently and vary by city. It is critical to seek personalized and up-to-date legal advice from a qualified property lawyer in Hangzhou before making any purchasing decisions.