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. “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. The group, through its unit Shum Yip Land, paid 24 per cent above the opening bid of 3.24 billion yuan for the plot. The developer will likely have to sell apartments built on the site at 40,000 yuan per square metre, according to Centaline Property Agency. Homes nearby are currently selling for 22,000 yuan per square metre. Hongkongers shop online for property deals in Greater Bay Area’s Zhongshan “The [higher] price is largely due to the island being developed into a financial hub, which will woo banks and financial institutions to set up office there,” said Huang To, the general manager for project development at Centaline’s Guangzhou unit. “The site is also close to a planned subway line, which will connect the island with the city centre.” Sales of homes in Nansha district have surged recently, rising by up to 40 per cent, after nearby Shenzhen rolled out curbs last month to rein in rising home prices. Buyers from Shenzhen have sought out new launches in Nansha, where prices at 60,000 yuan per square metre in the special economic zone stand at just a third of those in Shenzhen, Huang said. Nansha has already drawn investment from developers such as Country Garden Holdings, China’s largest seller of homes, Kaisa Group, Yuexiu Group and China Resources Land. Hong Kong’s biggest developer Sun Hung Kai Properties has committed to developing a 3.5 million sq ft office and retail project near Qingsheng station in Nansha. Hong Kong buyers nudge Greater Bay Area home prices to new heights Shum Chiu Hung, the chairman and chief executive of Times China, which has built up a property portfolio worth 100 billion yuan in the Greater Bay Area, said he remained upbeat about the property market in the region. “With accessibility gradually improving in the region, it will attract more people. It will enhance the area’s commercial value and create housing demand,” he said.