On the Agenda
The real estate market in the Greater Bay Area (GBA) is experiencing a significant uptick in activity, fueled by a series of favorable policy changes and growing interest from Hong Kong and Macau residents looking to purchase property in the region. Recent developments have pointed to a robust recovery in residential sales, particularly following the easing of market cooling measures and the implementation of supportive housing policies earlier this year.
According to Yicai Global, the increased willingness of Hong Kong and Macau residents to buy properties in the GBA has been notably influenced by policy adjustments in cities like Guangzhou, which recently relaxed home-buying restrictions.
Real estate developers report a surge in visits and sales, especially after local incentives were introduced, including a notable discount offered by New World China to Hong Kong residents, which resulted in significant immediate interest.
The policy changes in Guangzhou, which came into effect on July 5, now allow residents from Hong Kong, Macau, Taiwan, and overseas to purchase one property up to 120 square meters in restricted areas, with no limit on size or number of properties in other areas. This easing of restrictions is part of a broader move to make the GBA more accessible and attractive to potential buyers from these regions, who frequently travel and work across these cities due to their proximity and economic ties.
The Dow Jones Institutional News reported that these policy relaxations are part of the “517” policy introduced by the central government, which has spurred not just residential but also commercial real estate activity across the GBA. The policy includes measures such as the elimination of the new home loan rate lower limit and adjustments to the down-payment ratios, which have collectively boosted market sentiment.
Investment in the GBA’s real estate market reached RMB 11.9 billion in the first half of 2024, showcasing the area’s appeal not just for residential but also commercial investors, particularly in logistics due to strong demand and potential for capital appreciation. The GBA’s investment market in the first six months of 2024 was predominantly driven by state-owned enterprises and private investors, indicating robust confidence in the region’s growth prospects.
Connectivity enhancements, such as the opening of new mega bridges like the Shenzhen-Zhongshan Link and the Hong Kong-Zhuhai-Macao Bridge, have also played a crucial role in increasing the attractiveness of the GBA for Hong Kong and Macau residents. These infrastructure developments have made commuting and integration across the region smoother, encouraging more residents from the SARs to consider the GBA as a viable location for second homes or investment properties.
No Comments