Despite a contraction in bank lending to Guangdong’s real-estate market in Q2, property volumes and prices throughout the key GBA cities showed strength in the first half of the year as developers turned to alternative funding channels, latest provincial data shows.
According to the latest report by the provincial housing bureau, GBA cities diverged from the rest of the province between the first and second quarters. This was primarily due to the cost of capital. The eastern, western and northern regions of the province saw a rise in volumes but prices fell, while the nine cities of the GBA saw a rise in both volumes and prices.
Guangdong sold a total of 63.218 million sqm in property during the first half, down 3.7% year-on-year. Total contracted sales, however, were RMB888.76 billion, up 6.6% year-on-year.
The Ministry of Housing and Urban-Rural Development has issued warnings on four cities: Foshan, Suzhou, Dalian and Nanning, which have seen a sharp rise in their property prices in the past three months.
Zhuhai’s average price for new properties hit RMB22,349 per sqm in April, up 11.9% YoY and 3.15% MoM, according to data from Centaline. This follows a report we had published earlier this week indicating that secondary-market transaction volumes surged in April as well, up 66% YoY.
Before investors get too excited, it should be kept in mind that Zhuhai has seen some volatile trading in homes over the past year. Average prices hit a low of RMB19,212 per sqm in December last year before rebounding in January, falling again in February, and then recovering in March.
There is also quite a wide range within the city’s districts. Hengqin, the special economic zone facing Macau, leads the tables, at an average price of RMB44,264.11 per sqm. Doumen, on the other hand, is at RMB14,190.87 per sqm.
Zhuhai is being touted by several agencies as the place to look for relatively good value at the moment. One group in particular seems to be upbeat on the city, and they have a unique way of analyzing the GBA: with artificial-intelligence reports.
Find outmore (in Chinese) and check out the “robotic” reports from GBA Intelligence (no relation to us) here.
Shenzhen home sales in the secondary market touched a record high in April amid falling mortgage rates, population influx and a cyclical upturn in sentiment, according to SCMP.
Data from the Shenzhen Real Estate Information Platform showed that 7,570 homes changed hands on the secondary market in April, an increase of 66 per cent over the previous month and the highest monthly record since October 2016.
Prices were more subdued, however, rising 0.9 per cent monthly to reach RMB52,787 per square meter in April. Although mortgage rates have been lowered recently and Greater Bay Area euphoria has been evident, major factors constraining the market have not been loosened, including curbs on non-hukou holders and a three-year resale ban.
Zhuhai’s Doumen and Jinwan districts are said to have relaxed property purchase restrictions for first-time buyers, according to local media.
The two districts have removed barriers for buying new properties by first-time buyers while buying second-hand properties still require at least a five-year contribution to the employment-based social security fund.
According to online property platform Zhuge.com, Zhuhai saw 7,116 property transactions in Q1, up 167.12% YoY. According to online real estate information platform Guandian.com, more than half of these were transacted online.
The Zhuhai government launched cooling measures in April 2017, increasing the required number of years for social security contribution from one to five. Property must still be held for three years before being sold again.