Prices slide on the outskirts
PRICES for properties on the outskirts of Zhuhai are expected to be lower this year as the special economic zone attempts to get rid of its stockpile of residential and office space that has built up over the past three years.
Authorities admitted that the sell-off could be difficult as the sales market consolidated and underwent a slowdown.
The vice-director of the Zhuhai municipal government construction committee, Liu Youlong, said there was 10.76 million sq ft of gross floor area waiting to be sold, of which 80 per cent was residential. He said Zhuhai was also competing with other markets in the inland provinces which were beginning to open up to development.
Mr Liu also said overall prices for properties in the region dipped 10 per cent last year compared with 1993. Residential prices are now at between 278.8 yuan (about HK$256) and 371.7 yuan per square foot. Sometimes they can even reach 557.6 yuan.
Prices for office space are between 464.7 and 557.6 yuan a square foot.
'Our biggest problem is the properties further away from the city areas. Prices have dropped by more than 20 per cent. In the city areas, the decrease is minimal and sales in the city are better,' Mr Liu said.
On the whole, he said prices this year would stay around last year's levels.