Hi Greg, yes, there are many ghost towns here in tier 3-4 cities. with 90% vacancy rates, and also some premium office buildings are rented for FREE as long as the tenant pays the management fee (2-3USD/sqm).
Apartments are rented (consider youself lucky to find a tenant) for only 100USD/month for a two bedroom 80sqm apartment when the purchase price is well over 50K USD.
But in demanding areas like Shenzhen, Guangzhou, Beijing and Shanghai.
Rents are going for 10000USD/month for a shanghai Villa, normally rented to fortune 500 executives but the Villa is marketed for 6-7million USD minimum.
And obviously the net ROI is considered very ****** and landlord don't care because they consider the property as a rare resource and focusing on the capital gain more than ROI.
There is no property tax at the moment here but the management fee and rental tax is approx. 5-10% of the rental value depends on compound location.
China real estate market defidently is slowing down, it was going u too fast so 5yrs ago our federal government forced all tier 1-2-3 cities in China with purchase restrictions (maximum 3 residential property allowed to own per HOUSEHOLD), now 5yrs later when it's actually slowing down, they lose the restriction again to tier 1 city only and release the restriction on tier 2-3 cities, which is stupid cos nobody is buying anyway.
But our bubble is hard to break, because our MINIMUM down payment for any purchases is 30%! second purchase is 70% down payment! and third purchase has to be cash!
Bank financing is around 6-7% annual interest. so property value must drop 30-40% in order to encourage people to stop paying mortgage! So we don't have many foreclosure homes here, in any case they do, it would be some corrupted government guys got caught or some major criminal in jail, but in those cases ordinary guys won't get access to them as they are handled internally~~