Zhongnanhai

June 10, 2007

The expensive Beijing apartment hunt

Filed under: Chinese Life

I’ve definitely had bad luck when looking for apartments in Beijing. I moved to the city in 2004 when a number of new buildings opened catering to foreigners, such as Lan Bao and Sunshine 100, both near the Dawanglu Subway station in the Central Business District. At the time, my good friend and CCTV 9 news anchor James Aitken took a place in Lan Bao for 4000 RMB per month — it was a tiny, albeit new, bachelor suite. I paid 4500 a month for a bachelor in Sunshine 100, although the bed was in a room slightly separate from the living room.

We both watched as rents plummeted in the following year. I renegotiated my contract after a year, and got the rent lowered to 4000. Shortly thereafter, friends were finding beautiful new 2 bedroom places for 4000 or even less. But how times have changed.

Coming from Shanghai, I figured everything here must be cheaper. I had a 23rd floor (the top) 2 bedroom suite near People’s Square. It was 144 square meters. The view from my patio and bedroom window was to die for - an unobstructed panorama of Shanghai’s skyline. Not to mention it was a 5 minute walk to the Xinzha Road subway station. For this, I paid 6000 a month. Surely I can get something in Beijing for cheaper?

Not so. I mean, sure, if I wanted to live outside of the third ring road. My office is on Chaoyangmenwai, and after catching Beijing’s rickety and smelly subway from Dawanglu to Babaoshan (CRI) and the Military Museum (CCTV) I realized I want no part of it for my second tour in Beijing. I want to live within walking, biking, or a very short subway ride to work. But that also means higher rents.

Apartments quite far south of Jianguomen are going for 4500 - simple one bedrooms, and the one I saw didn’t even have a TV. Pretty much everything half-decent inside the third ring starts at 5000. What happened? Sure, people tell me, I’m being quoted the laowai price, even though my girlfriend has been doing everything, and she’s Chinese. I’ve also bargained with a few — I found a decent two bedroom loft for 5000 at Dongsishitiao. The furniture was old and sparse, the bathrooms and kitchen were falling apart. And it was a 6-floor upstairs hike to get to the front door. The building, although I’m told it’s new, looks like it serves as a dorm for migrant workers from Hebei. The best part was it had an upstairs loft and a big patio, although the architects, in their infinite wisdom, surrounded the thing with a 3-meter high concrete wall. We couldn’t see anything, other than the odd star in the sky, which is a once-a-year occurance in Beijing. Anyway, they lowered the price down to 4500 for me, but I still had to think about it.  Is this the best I’m gonna get?

Part of the issue is I’ve decided to study Chinese full-time, and work part-time, so I planned a reduction in my living standards already. But I didn’t plan this drastic of one.

Finally this morning, I found my new home. I’m paying way more than I wanted, but such is life in the new Beijing. I’ll be living in Xingfu Er Cun, a mere 5 minute walk north of Gongti’s north gate. It’s an awesome location. A 5th floor, two bedroom suite. No elevator, which is no big deal. It has white carpets in the living room and bedroom, which is uncommon in China to say the least. The bottom line is it feels like a home, and it’s well decorated. For this, I will pay 5200 RMB per month - about 1200 more then I originally budgeted.

Last night I sat on the rooftop at Kokomo in Sanlitun and paid 45 kuai for drinks, something that was not so common in Beijing even two years ago. I’m not a cheap-skate by any measure (just look at my bank account) but I’ve realized the frontier, bohemian, cheap party that Beijing used to be is quickly evaporating.  In a way, it’s sad, but also inevitable. 

I’m not sure how Chinese teachers make it here anymore. Beijing has a long way to go before it’s as expensive as Tokyo or Hong Kong (my favorite city), but it’s certainly on its way. 

I never thought I would miss Shanghai because it’s cheaper. 

2 Comments »

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  1. It looks like a lot of investors have bought properties in a buy-to-let perspective but the market is in favor of tenants rather than landlords. What is your opinion regarding the evolution of prices in the rental market? thanks

    Comment by Beijing boy — August 10, 2007 @ 7:09 pm

  2. Why don’t you live somewhere on Line 13, at least the air is cleaner up there. Lishuiqiao is nice and has everything that can be found downtown (Xidan, etc). About an hour to work

    Comment by Dave — September 9, 2007 @ 9:29 pm

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