Guangzhou property market boosted by policies to transform industry, attract talent
- Guangzhou’s home prices are expected to increase by 10 to 15 per cent in 2021, Cushman & Wakefield’s Alva To says
- It is also attracting interest from buyers in Hong Kong and Macau
Guangzhou’s property market will benefit from its industrial transformation and policy to attract talent from neighbouring cities, analysts said.
Home prices in the city were already trending up last year according to two gauges. The prices of new homes rose 11.8 per cent to 30,456 yuan (US$4,695) per square metre, according to China Real Estate Index System (CREIS) data compiled by brokerage Cushman & Wakefield. Home prices in general rose for six consecutive months between June to December, according to Centaline Property’s Greater Bay Area index.
The city’s property market will continue to build on this momentum in 2021. Cushman expects its home prices to rise by 10 to 15 per cent. And if they rise by as much as 15 per cent, Guangzhou could be a star performer among cities in the Greater Bay Area, said Alva To, vice-president and head of consulting for Greater China at Cushman.
“Guangzhou’s industrial upgrade and transformation will continue to stimulate the city’s economy. Together with policies to attract talent from neighbouring cities, this will lead to a sustained increase in demand for property in Guangzhou, and support growth in home prices over the coming years,” he said.
Home prices in Huangpu rose 19 per cent to 32,090 yuan per square metre last year, while the average price of residential property in Nansha district 28.4 per cent to 27,912 yuan per square metre, according to data from Cushman.