Expats
Courtyard living comes at a cost
By Todd Balazovic and Du Juan (China Daily)
Updated: 2010-02-24 11:50
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At one point in time, Beijing's traditional hutong housing (traditional courtyard dwellings) was the norm for almost all the city's residents.
It was a style of accommodation that allowed the citizens of Beijing's past to live an affordable city lifestyle.
But as hutong are razed to make room for more modern structures and their numbers dwindle, their prices have soared, even beyond those of new apartments in Beijing's towering skyline.
"The price of courtyard houses, like all houses, has been going up," said realtor Zhang Yuhai from the Xinzun Real Estate Agency.
Last year Zhang's company sold just three of its 100 listed courtyard houses, at an average of about 15 million yuan each.
Their most expensive courtyard listing is an 1800 square meter courtyard house being offered for 180 million yuan ($26 million) in the Houhai area.
Most courtyards are sold to businesspeople looking for a home or wanting to rent the property for extra income, Zhang said.
The courtyard houses are extremely popular among well-to-do expatriates as well, he added. Zhang said he recently sold a courtyard house to an employee at the Australian embassy.
Zhang estimated that approximately 80 percent of the courtyard houses in the Houhai area are sold to businessmen, with the other 20 percent split between foreign buyers and government officials.
He said that the number of available hutong for sale is somewhat of an illusion, because many Beijing families, whose houses have been in the family for generations, will put their courtyard house on the market just to get an idea of its value.
"If you try to buy it, they will refuse to sell it to you, they are just trying to see how much money they can get for it," Zhang said.
While all courtyard houses are pricey, the exact cost often depends on which part of the city it is in.
Jingcheng Guangsha Real Estate Co owns more than 70 properties in Xuanwu district as well as several in Dongcheng district.
The homes in Xuanwu sell for a fraction of the prices of those in Dongcheng and Xicheng, said Tian Kun, a realtor with the company.
"Over the past few decades the government has helped maintain the condition of the courtyards in these areas so they are worth more," he said.
While the number of original courtyard houses is irreversibly dropping, many companies have started rebuilding old ones, adding modern touches and selling them at similar prices.
One of Jingcheng Guangsha's most expensive renovated courtyards has a historic foundation, but everything else in the home is newly built.
It was once occupied by the mother of Qing Dynasty Emperor Qianlong, but was destroyed by a fire several hundred years ago, Tian said.
The courtyard has since been transformed into a 6,000 square meter home, which is listed for 420 million yuan ($60 Million).
Despite the raising prices, demand for courtyard houses is higher than at any time since before the financial crisis in 2008, said Wang Chengjian, a realtor for Maitian Real Estate.
Last year's courtyard house sales were highest in the past five years, said Wang. In 2008 prices dipped by more than 20 percent, but rose almost twofold in 2009, he said.
He said that despite changes in policy regarding the housing markets, he thinks that 2010 will be equally successful.
"I expect nothing but positive results," Wang said.
