China: Introducing Wuxi's "Glamourous City"

An Interview with Sales Agent Zhong Miao

Introduction | Welcome to Wuxi | Foreign Investment | A Glamourous City | More Information

By Vinnie Apicella

The Glamourous City area is located about eight kilometers (20 minutes by taxi) from downtown Wuxi’s City Center. Before development, the area consisted of farmland, parks and empty space. The project is expected to be completed by 2010. There are four phases to the development. The first phase is expected to be completed in 2007. The tallest buildings will be 32 stories. There will be a mix of tall and short buildings, many for residential use, and others for office space. The entire project covers an area of about 160,000 square meters. The location will include a new government complex, a large business center, Commercial Street, post office, bank, schools, cinema, medical center, parks, gardens, and more.

The prices for the apartments here are less expensive than in the City Center. Pricing varies depending on the location of each block and also, for the taller buildings, the prices increase for the upper floors with better views. Residents located on the 10th floor or above will be able to view the nearby lake, Tai Hu, a popular feature of the city. Prices also increase with the completion of each section within each phase.

VW: Please talk a little about the City of Wuxi. What is it like to live there?

Miao: Jiangsu Province, located in the eastern part of China, is a perfect example of China’s beautiful landscape. Wuxi is tucked away in the Yangtze River Delta and known nationwide as a major contributor to the province in terms of its richness and charm. Covering an area of 4,650 square kilometers (1,795 sq. mi.), the city has a population of nearly five million, with a little more than two million living in the downtown area. Under its jurisdiction are seven districts: Xishan, Huishan, Binhu, Chong’an, Nanchang, Beitang, and New District, as well as two county-level cities: Jiangyin and Yixing.  Wuxi is also home to the magnificent Tai Hu (Lake), which is recognized as one of the country’s most famous local and tourist attractions. 

VW: Why is Wuxi a good place to buy property over other cities in China? 

Miao: There are a few reasons I would recommend Wuxi. First, the cities in China that are set within the Yangtze River Delta are quick to develop and Wuxi is already very famous and well known all over China.  Second, real estate in Wuxi is still on the first step. The prices, on average, are lower than other cities around it.  Third, Wuxi is a popular travel destination. Many people from other parts of China and overseas come to stay here every year.

Other cities like Shanghai, Beijing and Hangzhou are bigger and better known, but the unit price of properties is more than twice as high as Wuxi. Because of this, it is often too much to buy for many Chinese. Residential apartments, business apartments and commercial properties are all developing very quickly the past three years. 

VW: So compared with major cities like Beijing and Shanghai, which have already seen great price appreciation, can we expect the same level of growth in Wuxi in the future?

Miao: Surely there will be. Investors should consider these points:

Wuxi’s GDP was 9th out of all the cities in China in 2004. So there is a large market with great capabilities.

The real estate business in Wuxi started later than other cities around Shanghai. So during this stage of development, while the other cities have already enjoyed great price appreciation in the real estate market, they have also priced themselves out of the market for many other less affluent buyers.

Many big companies are looking forward to invest in Wuxi now, including our developer, Vanke, which is the largest, most famous developer in the country. Here are a few reasons:

1. Wuxi is a travel city with a lot of landscape and scenic locations and is a pleasant place to live.



2. Wuxi is a big city with a strong economy. With the development of the economy, the industry and real estate here are developing quickly.



3. Wuxi is near Suzhou and Shanghai, so it is very comfortable to go to those cities for trade business, as well.

The local government is trying to make Wuxi one of the largest cities in China by developing its industry, publicizing its growing culture and enlarging its city area.

VW: What about the government’s decision to raise interest rates in some cities to curb the fast growth there?  How can this affect the property values? 

Miao: The goal of the government in Wuxi is to make Wuxi the second largest city in the middle of China—the largest city is Shanghai.

How will they do this? They will make the GDP of Wuxi grow more and more and the real estate business is the most important influence to GDP.  

Many new satellite districts will be built around the center of the city to solve the living problems—which means that many smaller towns will be building around the city center because the center is too crowded. 

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VW: Is it safe for foreign investors?  What about the risks?

Miao: Don’t worry about foreigners’ rights in China. The government won’t repossess their property. In fact the opposite is true; the government declared that foreigners’ right will be highly protected and many rules are in place to ensure this.

In china the market is large and complex. The economy and living standard are very different from north to south, east to west.  So it is important to research and choose the right city and region, the right development, the right developer, and the right time to invest.  

VW: Is it possible for a foreigner to get a bank loan there?  What are the terms?

Miao: Yes, but it’s a little complicated since the housing mortgage system that currently exists in China is still in the early stages of development. Several cities have enacted legislation and regulations to provide guidelines for mortgage processing on real property. Most cities have the same rules for bank loans to foreigners, but in Beijing and Shanghai the rules may be a little more flexible. Overall, the only difference is that foreigners need to show a justified file to certify their income and employment.

The maximum term for a home loan is 30 years. Prospective homebuyers are normally required to make a down payment of 20% of the purchase price. It's not unusual to see buyers put down as much as one-third or half of the cost of a new home in cash mainly due to the high savings rate (about 45%) and as yet limited financing resources.

VW: What is the maximum loan a foreigner can receive from a bank there? What are the conditions that the bank applies to foreigners?

Miao: The loans available are for 60% at most. The conditions to foreigners are as follows: show your justified files in a local notary agency to certify your income and job; show your passport; foreigners will also need a local Chinese sponsor. That is all. 

VW: Where is the best place to invest in Wuxi, the city or the suburbs? What are the advantages of each?

Miao: I believe both options can be good investments. But right now the suburban areas in the southern part of the city are the best because the most important new city center is under development there: Taihu Lake New District. It will embody the qualities of both a city and suburb all in one location after several years. Property growth is expected to be 15% in the City Center and 20% in the suburbs near Tai Lake. 

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VW: Please speak about "Glamorous City."  Who is the developer? 

Miao: Glamorous City’s developer is Vanke Real Estate Co Ltd., which is the biggest real estate company in China. Out of over 30,000 real estate companies, Vanke, with more than 20 years of experience, stands out as the best known name and is recognized as the most successful developer in the Mainland. It has successfully completed a variety of building projects throughout 20 major cities. Today, Wuxi represents Vanke’s latest venture and offers perhaps the greatest potential of them all. Some of its other renowned projects include Shenzhen: "Vanke 17 Miles", Beijing: "Vanke Star Garden", Shanghai: "Vanke City Garden", Nanjing: "Vanke Golden City Garden", and several more. 

VW: When did the development for Glamourous City begin and when is it expected to be completed?

Miao: It began at the end of 2004 and is expected to be completed in 2010. 

VW: What is the size of the project?  Based on the layout and model design, it seems that it will actually be like its own small city.

Miao: The land area is 960,000 square meters (0.37 square miles), and the construction area is approximately 1.3 million square meters. It is by far the largest development in Wuxi now. The landmark buildings that exist there now are the three tallest residential buildings known as “Lake Towers,” which climb more than 120 meters and 30 stories.

VW: Is it expected to be an international community? 

Miao: Yes, the designers come from Japan, China and Singapore.  The main design style of the “city” is Japanese, and because our development is more and more well known in the middle of China, many people from big cities like Shanghai, Suzhou, Hangzhou, Beijing, and abroad have bought properties here. There will certainly be a strong international influence from now on. 

VW: Are there many foreign buyers there so far?

Miao: Sure, there are many overseas companies in the New District (near our development) so many foreign buyers have bought apartments here. They are from Europe, USA, India, Japan, and so on. It’s almost like an international development. 

VW: What about the location?  It is further away from the city and near Tai Lake.  Is this a popular area for tourists?

Miao: Our development is located at the future City Center of Wuxi, Tai Lake New District, which is only one kilometer (just over a half mile) from Tai Lake. It is the only town in Wuxi that has no industrial pollution and also offers beautiful rural landscapes.  

VW: How many people are expected to live and work there?

Miao: There will be a total of 11,000 apartments upon completion and 40,000 people are expected to live here. It is possible that between the residential and business population, more than 50,000 people will comprise the community here altogether.

VW: Why will this project be successful? Why should someone buy property there?

Miao: There are a number of reasons:

1. It starts with the developer, Vanke. This is the most ambitious project in Wuxi to date and they will certainly make this “city” as glamorous and attractive as the name indicates.  The local government will support the area because it will be the most important district for government office, education area and living. 



2. The location. Taihu New District will be the new center of Wuxi in future. With the new CBD (Central Business District), City College and the government center, it will be home to more than 500,000 people in the future.



3. The development itself. This development has international style. The block design is an unprecedented open style, which includes a unique urban living space. It has eight living systems and will offer a true urban experience in a pleasantly suburban environment that will include several modern conveniences and amenities including public transportation, healthcare, schools, commercial centers, sports, quality service, and beautiful natural surroundings that will constitute the newly inhabited area and lead way for Wuxi’s newest level of city life. 

Glamourous City will also offer a professional housekeeping service system provided by Vanke Property Ltd. Every sector of this development will embody traditional Chinese customs from the detailed architecture and construction to quality of service from a professional management team, a well organized community structure will be installed; everything is designed with the comfort, convenience and safety of the future residents at the forefront. Modern technologies such as a satellite television system, underground parking, will be employed, and advanced security systems such as an electronic night watch, unit entrance guard, one car parking, etc., will insure safety and privacy 24 hours a day.

VW: If someone from overseas is interested to invest in Glamourous City, how can they get started? Is it a difficult procedure? Can you assist them?

Miao: It is very easy to start by contacting me at jujumiao@hotmail.com. I can explain the details on how to buy property in Wuxi and the overall procedure.

VW: What will hosting the 2008 Olympic Games in Beijing mean for a city like Wuxi?  Does this help property values?

Miao: The real estate market in Beijing and Shanghai express the direction of other cities of China.

The 2008 Olympic Games will have a great influence in China. In some ways it means that China is more international, more marketable and more opened. Wuxi has another name, ”Little Shanghai,” not only because it is very close to Shanghai, but also its economy and society are very similar. So this opportunity will not only offer an advantage to Beijing, but also to Shanghai, and therefore, Wuxi. 

China's accession to the WTO in 2008 will have a positive impact on China's real estate market as a result of increased business activity and the more systematic development of China's economy. As China's economy grows, more and more people can afford cars and housing. This will also provide enormous business opportunities to foreign investors.

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Additional Resources:

• China: A Nation in Motion: Traveling to Beijing, Wuxi and Shanghai as a Tourist and Potential Investor



• For more information about the real estate market in Beijing read our Interview



• Visit our Image Gallery for a full range of images and content on China to learn more about the country and its investment potential.

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