Foshan leads the real estate rally among Greater Bay cities
June 03, 2019 - Foshan
Foshan, an industrial city next to Guangzhou, has experienced the biggest gain in property prices in the last 18 months among the 11 cities in the Greater Bay Area plan, according to an index by Hong Kong property agent Centaline Property.
As of January, prices for new and used homes in the city have risen 35% since July 2017, according to the Centaline Greater Bay Area Index.
Zhuhai was the only city that saw a decline, with prices dropping 4% over the 18-month period to January.
Both new and second-hand properties are measured in the index, weighted by the annual GDP of each city.
Property analysts said administrative measures designed to cool housing prices have been a factor affecting prices.
“Since 2017, Guangzhou has introduced strong purchase restrictions. Plus, Foshan’s property prices are around half of that of Guangzhou, so some customers have turned to Foshan,” Terence Law, senior principle project director at Centaline said.
Foshan, formerly known as a manufacturing hub for air conditioners and refrigerators, has benefited from the development plan linking the city and its neighbour Guangzhou to form a mega-city, he said.
With the introduction of infrastructure such as the recently opened Hong Kong-Zhuhai-Macau Bridge and high-speed rail links, smaller cities connected by these transport modes have become attractive destinations for Hong Kong residents looking to buy on the mainland.
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