Retail property landlords in Guangzhou hope to tap capital from Hong Kong investors with the attraction of a strong economy and rising retail property market.
A rental yield of 10 per cent per year, compared with the average 4 per cent in Hong Kong, coupled with Guangzhou's booming economy were strong lures for domestic and Hong Kong investors, property consultants said.
Last year, Guangzhou's economic growth reached an eight-year high with a 15 per cent increase over 2002.
Centaline (China) said prices in the retail secondary market in Guangzhou soared 47 per cent year on year in the first half because of growing investment interest in the market.
Prices for street shops along Shangiu Road and Xiajiu Road - the two busiest shopping streets in Guangzhou - rocketed by 87 per cent to 150,000 yuan per square metre for the year to last month.
Taking advantage of the encouraging figures, eight domestic and Hong Kong developers including Shun Tak Holdings and China Overseas Land and Investment are offering more than 200 shops worth about 200 million yuan in Guangzhou to woo Hong Kong investors.