Stanley Poon, the managing director of Centaline Property, welcomed Guangzhou’s recent decision to ease home purchase restrictions for residents of Hong Kong, Macau, and Taiwan. Poon sees this policy shift as a strategic move that will attract more foreign capital and promote the city’s development as a commercial center in the Greater Bay Area.
“This is a very good policy change,” Poon said. The new regulations, introduced by the Guangzhou Municipal Housing and Urban-Rural Development Bureau, allow eligible individuals from the three regions to acquire residential properties located in designated areas without any limitations on the number of properties or size of the units. Previously, the city had imposed strict controls on home purchases, particularly in certain restricted areas.
Poon believes this move aligns with Guangzhou’s aspirations to position itself as a leading commercial hub within the Greater Bay Area, a regional integration initiative that aims to connect the city with Shenzhen, Hong Kong, Macau, and other cities in the region. “Everyone hopes to compete with each other in the Greater Bay Area,” he said. “If we can get rid of these external restrictions and policies, it will bring benefits to the development of commercial real estate in the whole city.”
The managing director emphasized that a commercial city like Guangzhou needs to be able to “accumulate foreign funds to set up a company, set up a headquarters, or set up a branch company” in order to “promote business, economic development, and some company activities.” By welcoming more investment from the nearby regions, Guangzhou can strengthen its position as a hub for commercial activities and foster a more vibrant business environment.
According to the realtor, Guangzhou’s new policy is following a similar path to Shenzhen, which had previously lifted restrictions on commercial real estate purchases by Hong Kong residents and foreigners. Poon explained that by allowing non-residential property acquisitions, Guangzhou aims to attract more foreign funds and diversify its investor base. He believes this policy change will inject new vitality into the city’s commercial real estate sector and enhance overall market liquidity.
The designated areas for the relaxed home purchase policies have already been identified by the city authorities, with six districts currently classified as such. This strategic move is seen as a way to attract more investment, especially from the nearby regions of Hong Kong, Macau, and Taiwan, which have long been important sources of capital and business activities for Guangzhou.
Poon emphasized the historial significance of Guangzhou as an open and welcoming city, known for its early trade links with foreign countries, and has laid the foundation for this policy change. “In the early days, Guangzhou was already quite open. To accept some foreign funds, foreign companies, or trade with foreign countries,” he said. “It was more developed in the early days. However, due to some restrictions, these measures have made it impossible for foreign investment in some commercial real estate in Guangzhou. This time, I believe that the overall policy is to welcome Hong Kong and Macau, or some foreign funds to enter the market.”
The realty expert believes that the relaxation of home purchase restrictions in Guangzhou reflects the city’s aspirations to excel in the Greater Bay Area competition.
By removing external barriers and attracting foreign investments, Guangzhou aims to strengthen its position as a commercial hub and foster increased business activities.
Centaline is optimistic about the potential opportunities this policy shift will bring to the development of commercial real estate in the city, as the influx of foreign funds can spur the establishment of new companies, headquarters, and branch offices, promoting economic growth and creating a more vibrant business environment. Victoria Chan
No Comments