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shanghaistevo
Newbie
Joined: Mar 04, 2009
Posts: 3
Status: Offline
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  Posted:
Mar 24, 2009 - 03:24 AM |
 
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| Post subject: Rental Prices Really Dropping? |
Was hoping that people can offer some on the ground perspective on how much rents are dropping in typical expat areas.
Is it typical to offer 10-20% below the price being listed? I'm coming from NY and that's how it works here at the moment. I've been tracking listings for a couple of months and I don't see prices dropping despite some comments to the contrary on the forum.
Apart from picking a good realtor, any advice on negotiating the best price?
Thanks to all who keep the forum informative and such a valuable resource to newbies.
Background:
Moving in mid-June and willing to pay $2 - $2.5k for a 2 bed in the French Concession. |
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jay_dee
SuperStar
Joined: Mar 22, 2009
Posts: 1376
Status: Offline
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Mar 24, 2009 - 06:04 AM |
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I've been looking as well, have been using 5 different agents. Monthly rents from 6,000 RMB and up are dropping, below that they are stable - but you get what you pay for. Can't trust many website pics as they may be fake.
It's the old adage... location, location, location.
Good luck |
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Havard
Reacher
Joined: June 21, 2005
Posts: 359
Status: Offline
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Mar 24, 2009 - 12:25 PM |
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| Quote: |
Is it typical to offer 10-20%
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Yes. You may start even lower, if you want. But don't give your agent a feeling that you are not sincere.
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I've been tracking listings for a couple of months and I don't see prices dropping despite some comments to the contrary on the forum.
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What listings you are tracking. Prices have fell down definitely. But if you are not here, it is difficult for you to compare apple to apple.
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Background:
Moving in mid-June and willing to pay $2 - $2.5k for a 2 bed in the French Concession.
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This budget will be fine for 2 bed apt. |
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Michael
Moderator
Joined: Mar 22, 2002
Posts: 6336
Status: Offline
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Mar 24, 2009 - 12:39 PM |
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You have see it. Do not try to rent a place remotely, sight unseen. Plan on spending a week in serviced apt and shop around a bit. You should be able to get something decent for less than 2K US ( 13.5K RMB ).. depends on what you want.
For a long term contract, you should be able to get at least 10%. Depends on how desparate the landlord is to get it rented. |
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etc
Barker
Joined: Sep 09, 2008
Posts: 145
Status: Offline
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Mar 24, 2009 - 03:55 PM |
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If you're being sent over on a contract, be sure to negotiate at least 1-2 weeks hotel stay while you're looking for an apt. |
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Wasabichez
PopStar
Joined: Dec 05, 2002
Posts: 1293
Location: Shanghai, China
Status: Offline
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Mar 24, 2009 - 06:33 PM |
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Ever notice how when people are discussing prices of places to stay they tend to forget the size of what they are getting, and automatically start saying how ripped off they might get? I think before any string that discusses rent prices should get all the desired factors stated first. Imagine, would you pay 3K USD for a 100sqm apt in French Concession? Even if it were 2 rooms, which would be tiny? |
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monalisalee
StreetBeater
Joined: May 10, 2005
Posts: 2456
Location: Shanghai
Status: Offline
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Mar 24, 2009 - 06:51 PM |
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Mate:
1. The listed price has NO relationship to the price you will pay.
2 . For expat areas at expat prices expect 20-50% reduction on asking.
3. As said above, NEVER buy sight unseen. Get a budget hotel, and do not hurry your look around. (you are making money while doing so).
4. Always use a reputable, honest agent. They will save more than their commission. And, yes there are a few.
5. Your agent will help you negotiate on YOUR behalf, also.
6. The drops in rent are much greater for the higher priced units, and these happen to corelate to expat. bonding areas.
7. Seems, things have not bottomed out yet, but not be too far away. I think once landlords, and owner/developers have made up their minds to bite the biscuit, we
should be close to bottom.
My 2 cents.
John. |
_________________
johnboy88 |
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Wasabichez
PopStar
Joined: Dec 05, 2002
Posts: 1293
Location: Shanghai, China
Status: Offline
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Mar 24, 2009 - 07:16 PM |
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Yeah, good checklist. Just that so many people are ranting on this site and they always forget to mention some factoids. Just trying to make a constructive suggestion. |
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shanghaistevo
Newbie
Joined: Mar 04, 2009
Posts: 3
Status: Offline
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Mar 24, 2009 - 11:11 PM |
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Thanks for all the feedback. I'll be set up with temporary accommodation for 2 weeks so I should be all set.
Thanks for the advice |
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supernena
Reacher
Joined: Apr 27, 2007
Posts: 220
Status: Offline
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Mar 25, 2009 - 11:07 AM |
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Anyone have a good agent out there? We have been looking but everyone seems to want to show us the same apartments and when we contact with someone from internet (craigslist etc) all seem to be fake marketers trolling for business.
Thanks, |
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tihZ_hO
Shanghai Royalty
Joined: Feb 17, 2004
Posts: 8864
Location: Jakarta - I got Paroled from Shanghai
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Mar 25, 2009 - 11:17 AM |
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^ Well this is the problem.
You are rather limited unless you have a local who you TRUST to be 100% on your side and not to pocket the kickback to do the searching. |
_________________
 "I can throw toilet paper into the toilet again! Thank you GTFO of China(tm)!!" |
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DrShanghai
Raver
Joined: Nov 06, 2005
Posts: 425
Location: everywhere
Status: Offline
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Mar 25, 2009 - 01:44 PM |
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I know so many Expats that are leaving Shanghai after many years here. I have to believe it is going to crash soon, and of course the Higher priced stuff will be discounted more.
I know of Nice villas going for Half what they would have gone for a year or so ago.
Of course we are mixed chinese family, and don't have to through the BS that a lot of Expats do. The Expats that have lost jobs that are still here, are not having much luck finding anything close to what they were making. anyway, my two cents! |
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bezoli
Rocker
Joined: Aug 30, 2006
Posts: 692
Status: Offline
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Mar 25, 2009 - 02:36 PM |
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| supernena wrote: |
Anyone have a good agent out there? We have been looking but everyone seems to want to show us the same apartments and when we contact with someone from internet (craigslist etc) all seem to be fake marketers trolling for business.
Thanks, |
not all...
im on craigslist  but there is 100's of listings now, don't blame u for not calling everyone. 
Prices have come down a lot if you rented in december, jan, feb.
lately a lot of people are moving houses because of this.
Last 2 weeks almost cleared out our whole fr. concession inventory, some places rented on the day they came out.
these people are just changing apartments though, actually, it seems like everybody is changing so there is a lot of demand out there at the moment.
But different from new expats, everytime they move, they leave a place behind (obviously not as good as the place they move into).
So, maybe when the general market is slow again (given that there is no economic recovery through '09)
november, december '09 and jan, february 2010 you'll see the real fall in rentals.
or not. who knows right? |
_________________
A place in Shanghai @ www.shplace.com |
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monalisalee
StreetBeater
Joined: May 10, 2005
Posts: 2456
Location: Shanghai
Status: Offline
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Mar 25, 2009 - 02:47 PM |
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@supernena: Have p.m. 'd you. |
_________________
johnboy88 |
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monalisalee
StreetBeater
Joined: May 10, 2005
Posts: 2456
Location: Shanghai
Status: Offline
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Mar 25, 2009 - 02:57 PM |
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Yes, there are two distinct rental markets here. Expat and local.
With the downturn, and companies employing expats having to cut back on employment, hours, or rental allowances, many of those people are forced to downgrade their rental, or even flee the country.
This is leading to a much closer rental (for similar properties) in those two markets. |
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johnboy88 |
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salohomes
Lurker
Joined: June 07, 2007
Posts: 20
Status: Offline
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Mar 25, 2009 - 08:12 PM |
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The price for rent dropped a lot, especially for high raise properties. But it is also up to the different landlord. I helped one of my clients got a deal for half price last month. Because the landlord is quite easy to negotiate and he understands the market is not as strong as before. The price for one Park dropped a lot. Xintian di and Lujia zui area also dropped. According my experience in past 3 month, i always can close a deal around several thousands less than the price the landlord asked. But i also met 2 landlords they did not want to low down the rent although their apartments has been empty for more than 6 months. It seems they are just very rich, and they just want to get the price they asked. But for most landlord, they need to pay mortgage, if the price you offered is not too unacceptable, they will low down the price. |
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