K Wah’s Dongguan project is betting on cheaper mortgages, river views luring Hong Kong homebuyers to Greater Bay Area city

Lower mortgage rates and the appreciation of the Hong Kong Dollar mean ‘it is definitely the best opportunity for Hong Kong people to buy a house in Dongguan’, K Wah executive says
K Wah has set aside a whole building with views of the Hanxi river for Hongkongers

China property

Salina Li

Published: 8:00pm, 7 Sep 2023

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Property developer K Wah International Holdings is betting that Hongkongers will be willing to put up with commutes of as much as 60 minutes to take advantage of more affordable property in the Greater Bay Area (GBA) development zone, and has set aside flats for buyers from Hong Kong at its Bayview project in Dongguan, a city in China’s southern Guangzhou province.

K Wah has set aside for Hongkongers a whole building in the project, which has been selling flats since 2020 and has sold more than half of the units on offer. A first batch of 10 flats in this building, which will enjoy views of the Hanxi river, will be launched soon, the developer said on Thursday.

These units will have gross floor areas ranging from 1,055 to 1,432 sq ft and will be sold for prices ranging from HK$2.6 million (US$331,667) to HK$3.8 million, or HK$2,600 per square foot on average, after discounts. The project will have about 1,100 residential units on completion.

“Since the border between Hong Kong and mainland China reopened at the beginning of this year, Hongkongers’ sentiment towards travelling north – in the GBA – for consumption and home ownership has been on the rise,” said Francis Yeung, general manager of operations at K Wah International (South China). “Buying for retirement and investment are important needs of homeowners here, as they can enjoy a better quality of life at lower costs.”

The launch of the flats for Hong Kong buyers comes as Chinese authorities adopt a slew of policies – from easing mortgage rules to slashing the minimum down payments for first and second-time buyers to 20 and 30 per cent, respectively – to prop up the mainland’s faltering property market and boost the economy.

A number of policies introduced are in favour of Dongguan’s property market, said Dan Pang, assistant general manager at K Wah International (Guangzhou and Dongguan).

An artist’s impression of the Bayview project in Dongguan. Photo: Handout

“The mortgage rate on the mainland has been lowered to a record low of 4.2 per cent, and the lower limit of the mortgage rate in Dongguan can be further reduced by 20 basis points,” he said.

“Coupled with the appreciation of the Hong Kong Dollar, it is definitely the best opportunity for Hong Kong people to buy a house in Dongguan.”

K Wah said it had complete confidence in the sale and was committed to handing over the flats on time.

Hongkongers had made more than 22.4 million visits – about 900,000 every week – to the mainland through the six border crossings in Shenzhen between the resumption of quarantine-free travel on February 6 and late July. The city, which has one of the least affordable housing markets in the world, itself took several steps in July to put homes within reach of first-time buyers and those seeking upgrades.

“The one-hour living circle of the GBA has become a trend, as the development of railroad networks and highways can now fully meet the needs of Hong Kong people working and living in the [development zone],” Yeung said.

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“Dongguan is located in the core area, with about 40 minutes’ travel to Guangzhou and Shenzhen, and 60 minutes direct access to Hong Kong’s West Kowloon Station via the Express Rail Link.”

Meanwhile, Shenzhen’s municipal government relaxed restrictions on the purchase of commercial properties and business flats by Hong Kong and Macau residents a few days ago, local media China Real Estate Business said on Thursday. There will be no limit on the number of units bought, it said.

Purchase restrictions for residential units remain unchanged. According to rules introduced in 2007, Hong Kong, Macau and Taiwan residents and overseas Chinese buyers can only purchase one residential-type commercial property for their own residence in Shenzhen.

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