Guangzhou's residential property bubble burst long ago. After decades of state-planned housing projects, the 1980s and 1990s witnessed a surge in privately financed construction.
This resulted in urban and suburban residential developments, such as Riverside Gardens and Clifford Estates in Panyu, and Jin Cheng Gardens near the city centre on Dongfeng Road.
A feeding frenzy erupted in the housing market as families bought numerous residences and then rented them out, hoping that one day they would be able to sell them for a huge profit. They are still waiting.
A glut of new apartments, funded largely by Hong Kong and Taiwanese investors, pushed prices down, stunting the growth of the market. In recent years, rental prices have nearly halved.
Today, huddles of empty apartments and half-built office buildings are strewn throughout the city and in the suburbs. But despite a deflated housing market, elaborate residential developments are still being built for high-end clients with a 'build it and they will come' kind of philosophy.
One developer in the 'field of dreams' is the Kingold Group, owned by Zhou Zerong, an overseas Chinese from Australia. During its 10-year investment history in China, Kingold has ploughed 10 billion yuan (HK$9.4 billion) into Guangzhou, in the form of property, education, agriculture and hi-tech industries. This year, Kingold is launching an ambitious plan to capture a section of the residential property sector, and is targeting high-end clients. Favorview Palace, located in Tianhe district, is being marketed as an exclusive residence for locals who love high living.