SHK, New World launch homes in Guangzhou as China’s property market shows sign of recovery

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Companies experienced a surge in showroom visits during China’s ‘golden week’ holiday earlier this month

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The Forest Park project in Guangzhou, located about 10 minutes’ walk from the Guangzhou South railway station. Photo: Handout

Yulu Ao

Published: 1:32pm, 20 Oct 2024Updated: 2:45pm, 20 Oct 2024

Some Hong Kong developers are rushing to sell more homes in mainland China, offering discounts to lure buyers as visitors to showrooms spiked following fresh housing stimulus and measures to ease home-purchase restrictions in major cities.

Sun Hung Kai Properties (SHKP) is selling 109 flats at Forest Park in Guangzhou in southern Guangdong province consisting of three- and four-bedroom flats, including 10 units set aside for Hong Kong buyers. The developer is planning to offer more units by tender in the coming weeks, a project sales manager said.

New World Development is also enjoying robust home sales on the mainland so far this month, with projects in Guangzhou outperforming those in other locations after easier home-purchase rules led to a rush of prospective buyers to its showrooms, executives said.

Beijing announced last month the biggest stimulus package since the pandemic to rescue the property and stock markets. The central bank lowered mortgage rates and down payment for second home purchases to revive demand. Several tier-1 cities including Beijing, Shanghai, Shenzhen separately eased home-purchase rules, with Guangzhou removing all the curbs on non-local residents.

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“The [Forest Park] project received very good response last year and some selected units targeting Hong Kong buyers were sold out soon after launch,” said Ivy Xu, a general manager for sales and marketing at SHKP. “This gave us confidence to offer more units this time, following the removal of curbs.”

The 10 units earmarked for Hong Kong buyers range from 95 sq m (1,022 sq ft) to 122 sq m in sizes. They are priced at 37,388 yuan per sq m on average, according to the marketing list. The lowest price for a three-bedroom unit is 3.18 million yuan (US$447,800), while a four-bedroom unit is priced from 4.99 million yuan.