Foshan housing market streaks higher despite curbs
Home prices in Foshan continue to rise after a 43 per cent jump in the past year, in spite of government curbs to limit speculative investment
Prospective home buyers flocked to an Evergrande housing project in Foshan, a mid-sized city close to Guangzhou, on the weekend, indicating that optimism towards the residential market remains buoyant in spite of recent home buying restrictions.
On Friday afternoon, the sales office of Evergrande Joy Town near Qiandeng Lake in the Nanhai District of Foshan attracted dozens of prospective buyers in what was largely an information gathering exercise.
Since phase 1 of the development sold out in a single day on May 30, with as many as 906 units being snapped up, the developer has yet to give a formal indication when the next batch of flats in phase II will be released.
Zhang Peng, a 30-year-old public servant, brought his fiancee to the site, saying he wanted to buy an apartment near his office as he would get married soon.
“Joy Town is the only new project available in the whole Qiandeng Lake area,” he said. “Though I think it’s quite expensive, there’s no choice, so we just come to have a look.”
Owing to government price controls, the project was priced at 20,000 yuan (US$2,934) per square metre. Wu Daoxiang, a research manager at Foshan Centaline Property Agency, said without the restrictions, prices would likely have shot up to 24,000 yuan per sq m.