Housing policy easing, falling yuan to attract young Hongkongers to ‘Greater Bay Area’ cities of Zhuhai, Zhongshan and Guangzhou
- Inquiries from Hong Kong for apartments in 70-year-lease projects have gone up
- Better sales forecast as the yuan is expected to weaken further
More young Hongkongers looking to get on to the property ladder are expected to seek homes in the “Greater Bay Area” cities of Zhuhai, Zhongshan and Guangzhou, as a result of policy easing and a depreciating yuan, property agents have said.
The agents said they have witnessed a twofold year-on-year increase in home sales in these cities, while enquiries from Hong Kong buyers looking to buy apartments in 70-year-lease projects have also gone up.
“We are seeing more inquires from young Hongkongers in their 20s and 30s, who are considering working in mainland China and would like to buy a home here,” said Andy Chan of Qunxi Properties, a Zhuhai broker that focuses on Hong Kong clients.
In just two weeks this month, Chan has sold seven new homes in Zhuhai to buyers from the special administrative region. “Previously, seven deals would qualify as best monthly performance,” he said.
Guangzhou, on June 1, removed a requirement of handing in proof of the payment of one year’s social insurance for Hongkongers looking to buy property.
Zhuhai’s Housing and Urban-Rural Development Department confirmed local media reports on May 24 that homebuyers from Hong Kong and Macau will be allowed to buy one new apartment per applicant on 70-year leases and that they would enjoy the same mortgage rates as local buyers.
On May 5, the Zhongshan Housing and Urban-Rural Development Department said that as long as homebuyers from Hong Kong and Macau paid half year’s social insurance they could buy a 70-year-lease apartment.
Home sales in Zhuhai saw a 77 per cent week-on-week increase to 1,404 units for the week starting May 27. The home purchase policy relaxation, announced three days earlier, is expected to boost these numbers.
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“Projects close to the Hong Kong-Zhuhai-Macau Bridge, for example in Hengqin or those within 10-20 minutes ride to the bridge, are particularly of interest to Hong Kong buyers,” Chan said.
He said he expected better sales in the coming months as the yuan is expected to weaken further. “It is a good time, as a stronger Hong Kong dollar will stimulate spending on mainland China property. We can see at least 5 per cent more buyers from Hong Kong, as there is a lot of pent-up demand in the market,” he said.
The yuan has devalued by 8 per cent over the past 12 months, making homes in mainland China more affordable.
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“There has been an increase in inquires from Hong Kong and Macau about new homes in Zhongshan since the relaxation. We saw at least 30 per cent more buyers crossing the border last month,” said Michael Zhang Qiming, sales manager at Kaishun Real Estate, a Zhongshan property agency.
About 4,100 new homes were sold in Zhongshan in May, twice as much as the previous year, according to local property broker Leyoujia.
“Echoing the [Greater Bay Area] initiative, these cities in Guangdong province are trying to attract young people from Hong Kong and Macau to come and settle down, and offering them a home to live in is the first step,” said Dick Li, general manager at Centaline Properties’ Guangzhou research unit.
