Hi, my girlfriend is thinking about purchasing property somewhere along Line 1 from Xujiahui -> Caobao Road (works in Xujiahui so max 5-10 min from a line 1 station). Or maybe even farther out, depending on price and availability. The price will have to be less then 500k and 1 bedroom. (maybe 40-ish sqm)

I just wonder what kind of prices we can expect, have the apartments on this price level decreased in price? How much should she give as an initial offer for a place? (I mean the stated price is not very often the selling price...) The apartment will probably be second-hand but will probably want to renovate it a little bit.

We both have practically 0 experience in buying apartments and need some help

Edit: Another possibility might also be around line 9, it is going to be extended to Xujiahui this year right?

The asking price of this area (applicable to other areas) has been down for 10-15%, however, I am not sure of the price in real trade. The asking price for apartment near Caobao Road is about RMB15,000/sqm. If you look at the areas near the Carrefour Area (Lian Hua Road, close to the outer ring road), the asking price should be around RMB10,000/sqm. Counteroffer 15-20% off the asking price if you are really interested in one apartment.

There are several areas that she may go and check:
1. CaoBao Road Area (康健路、冠生园路)
2. Kangjian Area (虹漕南路) - Pretty quiet area
3. Carrefour Area (莲花路、古美路、平阳路)
4. If you are looking at Metro Line #9, check the Tianlin Area, the part near Liuzhou Road (柳州路)， Guilin Road (桂林路) and Yishan Road （宜山路）.

After searching the internet for some basic info (don't have to search too much, because the info of availability changes everyday, and there are lots of trolling agents), you should go and visit the areas. Check with the local realtors and ask prices, and then go and see what the properties look like. When I was buying apartments, I visited more than 40 properties to understand the market.

As both of you are new to purchasing real estate asset, there are other important things you need to know in addition to pricing:
1. The process of buying second hand property, and where are your risks in that process (there is no risk-free transactions).
2. Fees and taxes that you need to pay for the transaction, and at what time.
3. How to get loans from bank, and which bank offers most convenience (usually, your agent will provide info as they will get paid by the bank for bringing business).

Cautions/Tips:
1. Don't talk to any agent who cannont even speak decent Putonghua.
2. If the price is very low compared to others, be careful.
3. Deal with landlord with Shanghai Hukou will be safer.
4. In addition to checking the property ownership certficate, you can go to the District Estate Tranction Center(区房地产交易中心）to verify who owns the property.
5. Pay the agent fee when you get the ownership certificate (Realtor will urge you to pay at the time of signing contract).
6. Don't buy the first floor, and be careful with the top floor (esp. pay attention to the ceiling to see if there is any noticable leakage).
7. Your agent may tell you there is a valuation fee (评估费), and try to incl. that into the commission you pay to the agent. And at least, this fee is negotiable.

Prices did not decrase much yet. I would wait 1-2 years.

^ only applicable to someone who wants to invest or who owns at least one property already. It's not good timing yet.

On the other hand, millions of people in the cities need basic housing facilities, especially those university graduates who desperately want a basic abode before they turn 30.

only applicable to someone who wants to invest or who owns at least one property already.

Till then you can rent, pretty cheaply. Cheaper than a mortgage payment. If I wanted to buy apartment where I live it would be 1.5M, I pay 4200 including management fee.

Thanks Havard for the info.

Well, we have thought about renting too. I will be gone for about 4 months next year though so she needs to find her own place then, and then change again for when I come back. We just want to look around to see what it costs and what we can expect. Then calculate how much the price difference will be and then weigh in other factors.

If I would buy for investment I would definitely wait to, but I am not allowed to buy yet (and neither do I have the job/money needed). Will be a student for another 3-4 years.