What to Consider When Buying a Villa

In China, the older a villa is, the more likely it is to be well-built; newer ones often aren’t.

That’s because the government bans the construction of villas.

The way they enforce this ban is straightforward: they control the plot ratio—say, requiring it to be greater than 1. A plot ratio above 1 means developers must maximize building coverage and height. In practice, developers always find loopholes: they’ll design a high-rise tower within a residential community and then build villas around it, satisfying the plot ratio requirement while still delivering villa units. That’s why most modern villa communities include at least a few high-rise buildings.

Older developments didn’t face these restrictions, so they tend to be better built.

Such projects typically share a few characteristics: problematic land zoning, numerous illegal structures, and a higher likelihood of leaks.

It’s not uncommon to find villas built on land zoned for education, research, agriculture, or even affordable housing. (Most of these are illegal constructions.)

If you’re looking to buy a villa, purchasing a secondhand one is the best way to mitigate risk.