I can only speak for myself and my situation. After buying two houses and two commercial properties in China, I consider myself one of the lucky ones. I have not been ripped off or lied to (…yet), but I would say:
Do not by any property that is not built yet.
I did, and while the house was constructed without any major problems, I had an advantage. Specifically, we have a family friend who owns the real estate company, therefore, small problems we encountered were easily fixed. I assume most expatriates do not have this luxury.
This GoKunming.com interview sums it up quite well.
One, don’t invest in forward delivery housing - buying property before it’s finished or even begun to be built - the price may be a little cheaper, but the risk is much higher.
Why? Because you could end up with a house you cannot live in — you could lose your entire investment. Just last night, I watched a CCTV story about some Chinese families who bought into a new development and once the keys were delivered, they opened the door to their new house to see two inches of water flooding the living room, and the cement floor crumbled if you walked over it. They said no one will help them. (Where is the government agency to protect homeowners? Why do they have to resort to calling a television station to put pressure on these fraudulent companies?)
