Hong Kong-listed developer Shenzhen Investment’s unit wins plot in Guangzhou’s Nansha district in record US$578 million
- Developer’s Shum Yip Land unit has won the plot in Nansha district with a 4 billion yuan offer, surpassing a week-old record
- Property prices continue to rise in Greater Bay Area cities
Shum Yip Land, a unit of Hong Kong-listed Shenzhen Investment, has won a plot of land in Guangzhou’s Nansha district for a record 4 billion yuan (US$577.9 million), a new price benchmark in the Greater Bay Area city.
The plot is located on Henglidao, an island in Nansha that will be developed into a financial centre, the Guangzhou Trading Resources Centre said on Thursday. It could yield a total gross floor area of 209,247 square metres, which means its price tag translates to 19,140 yuan per square metre.
The previous record of 19,117 yuan per square metre was set only a week ago by Luneng Group, a state-controlled conglomerate involved in coal, aluminium and property. Guangzhou is among the nine mainland Chinese cities included in Beijing’s Greater Bay Area development zone, and property prices in this area continue to rise.
Shenzhen Investment, which is the largest listed real-estate company under State-owned Assets Supervision and Management Commission of Shenzhen Municipal People’s Government and owns 4.38 million square metres of land in China, has said it will concentrate its assets and business in the development zone.
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China's ambitious plan to develop it own ‘Greater Bay Area’
“All developers in mainland China hope to grab a lion’s share of the region, which is to be transformed into one of the most prosperous economic zones in the future,” said Raymond Cheng, CGS-CIMB Securities’ head of Hong Kong and China research.
Land prices in areas close to Hong Kong will certainly rise in the coming years, he added. Nansha is about an hour from Hong Kong on the Guangzhou-Shenzhen-Hong Kong Express Rail Link.