Hong Kong investors the target of Zhuhai residential development

A Guangzhou-based developer is set to launch its residential property in Zhuhai to Hong Kong investors, taking advantage of the proposed development of an economic zone in Hengqin, the largest of Zhuhai's 146 islands.

Times Property, which was established in 1999 with developments mainly in southern China, will start selling its property in Hong Kong from Friday to Sunday.

"The development of the Gaolan Port economic zone is not bad. It has attracted a number of international companies. But supply of new residential development is limited," said Wilson Cheng, who is in charge of the project's sale at marketing agent Centaline Property Agency.

The developer will release for sale a first batch of 28 flats worth a total of 18 million yuan (HK$22.69 million). The flats range in size from 80 to 90 square metres. He said the average selling price of new flats ranges between 5,000 and 6,000 yuan per square metre, but the developer was targeting a selling price of about 7,000 per square metre due to the better build quality.

Buyers are able to get a mortgage of up to 70 per cent and there is no restriction for Hong Kong and overseas buyers.

Zhuhai is a prefecture-level city at the mouth of the Pearl River.

Hengqin, about three times the size of the adjacent Macau peninsula and Coloane Island, is the subject of a development scheme.

The government is planning to develop Hengqin into a high-end holiday destination.

Average property prices in Zhuhai have risen 10 per cent so far this year, according to Centaline. "Prices in the new development areas such as Jinwan district grew 15 to 20 per cent. They recorded a higher property price growth as the local governments did not introduce buying restrictions. But the city centre has buying restrictions on foreigners. It forced buyers to shift their focus to new development areas," Cheng said.

He said more Hong Kong investors were buying flats in Zhuhai after the Hong Kong government released property market cooling measures in February.