GUANGZHOU GUANGZHOU'S LUXURY market continues to enjoy brisk business, despite the city government's imposition of a capital gains tax at the beginning of the year. The levy is the equivalent of 20 per cent of the profit made on a resale, if a property is resold within five years. Buyers are showing confidence and continue to put their money into high-end properties. Spencer Pang, general manager of DTZ Debenham Tie Leung (Guangzhou), said local residents and buyers from other provinces and Hong Kong were active in the luxury homes market in Guangzhou. 'The Guangzhou market is dominated by mainland property players, but outside developers such as Hutchison Whampoa and CapitaLand are increasing their investment there,' he said. Luxury prices grew steadily last year, with some outstanding projects registering increases of 20 per cent or more. Quality luxury apartments in the city were trading at 14,000 yuan to 20,000 yuan per square metre, Mr Pang said. Properties in the central districts or those with views of the Pearl River were in especially strong demand. There is a large supply of luxury homes in Zhujiang New City in Tianhe District, and on Ersha Island in Dongshan District. Other popular locations are Haizhu and Baiyun districts. Limited land supply for luxury developments in central locations and a general trend for better lifestyles were sustaining and pushing up prices, Mr Pang said. Central Park-View in Zhujiang New City has been a strong attraction for buyers, and units in its newest phase are selling at about 14,000 yuan per square metre, compared with 10,000 yuan in 2003. Sales are also under way at Top View and The Cosmos, also in Zhujiang New City, where average selling prices are 15,000 yuan and 20,000 yuan per square metre respectively. Favorview Palace on Huijing Road in Tianhe is selling at 10,000 yuan per square metre, while Victory Garden in Dongshan District is more expensive at about 18,000 yuan per square metre. Castle Hill Luxury Homes in Baiyun District are selling at 11,000 yuan per square metre, and in Panyu District, the villas of Cape Coral are priced at 14,000 yuan per square metre. Prices fall into another category altogether on Ersha Island, with its exclusive living environment. Villas in Hongcheng Garden are going for about 24,000 yuan per square metre, and New World Riverside Villa is selling for as much as 41,000 yuan per square metre. Mr Pang said Guangzhou's luxury properties were attracting an increasing number of Hong Kong buyers. 'Prices in Guangzhou are maintaining relatively attractive levels. What you'd pay for a 80 square metre flat in Hong Kong would buy you a 300 square metre luxury home in Guangzhou,' he said.
