Guangzhou property market rebounds as Macau buyers face fewer hurdles

Guangzhouís property market has shown signs of sustained recovery since the city introduced its “Eight-Measure Housing Policy” on April 30, with residential transactions continuing to increase and authorities moving to simplify home purchases for Hong Kong and Macau residents.

At a government briefing last week, the Guangzhou Municipal Housing and Urban-Rural Development Bureau said seven of nine residential land parcels sold since the measures were introduced attracted premium bids, indicating improving market confidence.

The city has also simplified home-buying requirements for Hong Kong and Macau residents. Eligible buyers can now purchase homes in Guangzhou by presenting their residence permits and travel permits.

Housing provident fund loans have also increased, with the number of loans issued and their total value rising 34% and 43%, respectively, year over year following the policy rollout.

Authorities have accelerated the disposal of existing housing inventory by purchasing completed commercial properties for use as resettlement housing in urban village redevelopment projects. More than 500,000 square meters of properties have been acquired over the past three months, helping reduce inventory.

First-hand residential transactions increased 4% year over year in June and 9% in July, compared with 3.7% growth from January through May. From Aug. 1 to 26, first-hand residential online registrations rose 18.6% from a year earlier.

Commercial property transactions also improved, with first-hand commercial property sales increasing 18.6% and 19.4% month over month in June and July, respectively.

Market activity has also strengthened. Weekly visits to selected residential projects rose 18.2% in June and 11% in July from the January-May average, while weekly purchases increased 32.9% and 28.7%, respectively.

According to National Bureau of Statistics data, Guangzhou’s new and second-hand home prices posted month-over-month increases for five consecutive months through July. Meanwhile, the first-hand residential inventory absorption period has declined for three straight months, while the commercial property figure has shortened for eight months.