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Chinanews, Shanghai, Dec. 8 – Foreigners who earn higher salaries than local residents in Shanghai are usually the main consumption group for luxury houses or villas1 in the city. Although property market in Shanghai has entered into a relatively2 stagnant3 period since last year, it hasn't dampened the enthusiasm of those foreigners who want to buy a house of their own in Shanghai. Most foreigners are more like local residents now in that they are more shrewd with their money and want to look for some really “cheap” houses.
Mr. Sifan, from Germany, has been working in Shanghai for four years. He earns about 10,000 US dollars a month and always wants to settle down in Shanghai. He said that although there are plenty of houses in Gubei district, where he now lives by renting a house, most of them are costly4 since the housing prices there have gone up for a period of time. These houses are sold at 20,000 yuan per square meter, which is “not cheap” at all. So he turns his attention to the neighboring regions outside the city. “My present house was sold to me at only 4,000 yuan per square meter. Management services here are as good as those in villas. The house has 200 square meters and I only paid less than one million yuan for it,” he happily introduced to this reporter about his newly bought house in Kunshan, a town close to Shanghai. Although the location of the house is a little bit far away from Shanghai, still he can reach his office with 40-50 minutes’ drive, which is acceptable. To him, the house is not only good for living, he also can make investment in it. When people like Sifan are keen on looking for a cheap house in neighboring regions outside Shanghai, most other foreigners are trying to find a house in the downtown area that might be sold at reasonable prices. And price has become a more and more important factor in their purchase. Some will go around to different places to compare the prices and others will take chance to slash5 prices with the sellers if they know that the sellers need cash immediately. Having sufficient money in hand and also wanting to buy a house, foreigners might still not pay for a house unless it is a good buy. Information shows that in Shanghai, the proportion of the houses sold to foreigners is always increasing. Two years ago, such proportion already reached 5%. Although in recent years, Chinese government has issued some policies to constrain6 foreigners from buying houses in China, the housing market is still booming as many foreigners want to buy a house to settle down in Shanghai.
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