There are many good reasons to buy a new, not second-hand, home in China. Every time I talk to property investment expert Chris Dillon I glean something new. Most of it is common sense, such as if you buy from a developer, you evade to 0.5 per cent to 3 per cent estate agent commission, depending on location and your negotiating skills.
In addition, the developer should have resolved any title issues and you’ll get the full 70 year land lease from scratch. You probably have a better chance of a good quality building with decent landscaping and services and management.
Land Policy
Dillon, author of property buyer's guide Landed China, reminded me that all urban land is owned by the state in China and all rural land is owned by collectives. Individuals and companies are not allowed to own actual land in China. Land for residential land use is leased from the state for 70 years, and the first land lease was signed in Shenzhen in 1977. Since then no land leases have expired, but the central government has promised to renew residential leases - but they have not explained the process or for how long or how much it will cost.
Land for industrial use is leased for 50 years, land for commercial use, 40 years, but neither industrial nor commercial carry a lease renewal guarantee. And improvements revert back to the state so if you put up a building, it goes back to the government when the lease is over.