The tumbling yuan is stirring up a property treasure hunt in the Greater Bay Area for Hong Kong buyers
The more than 6 per cent drop in the yuan in the last six weeks translates into a significant discount for Hong Kong buyers and their US-dollar linked currency
The dramatic swoon in the value of the yuan in recent weeks has fuelled a treasure hunt among Hong Kong buyers for properties in the “Greater Bay Area”, as the city’s US-dollar linked currency translates into a sizeable discount for cash buyers.
The offshore yuan, which is traded by international investors outside mainland China, has tumbled by more than 6 per cent against the US dollar since mid-June. The currency was recently quoted at 6.84, its lowest level since June 2017.
The number of transactions for mainland homes in some cities have edged up 20 per cent from June, according to market watchers.
“We have seen more young people buying in Huizhou where non-local residents are allowed to buy one apartment,” said Smith Tang, senior regional sales manager at Centaline Property Agency’s Kwai Chung branch.
They are targeting 40 square metre studio flats that cost 500,000 yuan (US$73,344), or 11,600 yuan per square metre in Huizhou, he said. The travel time between Hong Kong to Huizhou will be cut by half to about 90 minutes after the opening of Liantang Entry -Exit Port by the end of this year, he said,