For foreigners who are living in China, apartment living can be quite different as compared to other countries. Not only is housing in China quite expensive as compared to the average income, but property is considered to be leased for periods of 70 years at a time. Also, apartments cannot be purchased in China without living in the country for at least a year, which can be proven by work histories and other documentation. All of this can be quite confusing to foreigners who are living in China. Foreigners who purchase apartments in China after satisfying the residency requirements will also have additional paperwork and necessary documentation to complete during the overall mortgage and apartment purchasing process.

The Cost of Apartments in China
Although the overall cost of an apartment in China is about half of what would be expected in a large United States city such as New York City, the average income in China is much lower than in the United States. This translates into the one of the most expensive housing costs in the world when compared to personal income. The housing market is also somewhat unstable in China. The average Chinese home buyer will almost always choose new construction, so there isn't much of a secondary apartment market in China. Purchasing an apartment will also require at least a thirty percent down payment, which is a much higher percentage than is required for buyers with good credit in many other countries.

Before buying an apartment, it is extremely important to do a lot of research to make sure the apartment isn't located on property that might be slated for land or highway development. Even though property in China is considered to be leased for 70 years at a time, and the expectation is for leases to automatically roll over when they expire, the government can essentially null an apartment lease if they need the property for other uses. Because there isn't a standard system for fair reimbursement when this happens, it is important for those purchasing an apartment to feel certain this sort of situation won't happen to avoid possible substantial financial losses.

Shopping for an Apartment in China
Because of the uncertainty of leasing arrangements and other confusing details surrounding the Chinese housing market, it is often recommended that foreigners work with a trusted Chinese friend or an agency when shopping for an apartment. This type of insider advice and guidance can help the buyer avoid the types of pitfalls that can commonly occur during the purchasing process. The entire purchasing process for a newly built apartment can often take several years. Once the deposit is handed over and the contract is signed, the buyer cannot back out of the purchase without losing their entire deposit. This is yet another reason why making sure the property is sound prior to purchase is so essential.

Another surprising aspect of buying an apartment in China is that apartments when purchased are merely a shell, without finishing details such as fixtures, flooring or even doors. These finishing details are considered to be part of the overall decorating process, and will add further to the expense of purchasing an apartment in China.