A tale of two cities in China’s Jiangxi province
While the property market in the capital of Nanchang is flat, prices in new satellite towns are rising despite the lack of facilities
In Jiulonghu, a new town 15km southwest of Nanchang’s old downtown, rows of unfinished buildings and cranes dot the skyline, and the brand new boulevard is devoid of people.
At first glance, it might look like another one of the “ghost towns” that have become pervasive across China – but it’s not.
Local resident Zhou Ming bought an apartment here three years ago when the price was about 5,000 yuan (HK$5,900) per square metre. Now the price has surged to about 9,000 yuan. “Most of the homes are empty now, but are sold out. Soon people will move in,” he said.
This new town has been made possible with the relocation of the Jiangxi provincial government, the planned subway lines, and Dalian Wanda Group’s 400 billion yuan Wanda Culture and Tourism City. The residential units offered the Wanda’s project were so popular that some people failed to secure units when the sale began.
The average price at the Wanda project at the end of May was 9,800 yuan per square metre, up from 9,000 yuan in early May, according to information service portal Fang.com.
Homes in Jiulonghu, a nascent residential zone with incomplete public facilities, boasts prices that in some cases exceed those in the more established downtown.