[photopress:shenzhen.jpg,full,alignright]Some of the residents of Hong Kong are still buying up properties on the mainland despite government measures to try to hose down the sector. Most popular area is neighboring Shenzhen where a lot of people from Hong Kong now work.
According to Land Power International, a leading Hong Kong property service firm, between January to September, 17,200 mainland properties were bought by Hong Kong people for a total of RMB108 million ($13.5 million). Land Power Chairman Michael Choi predicts transactions made in the last quarter will bring the total number of purchased properties to 23,150, worth a total of RMB145 million ($18.1 million). Michael Choi said, ‘Third-quarter figures show that Hongkongers’ buying spree on the mainland remains high.’
After May, the implementation of a raft of taxation and administrative measures by the central government caused property buyers to exercise greater caution. Many Hong Kong people shelved their purchase plans at that time, particularly in Shanghai. But, Michael Choi said, that ‘the market atmosphere has improved since September. Properties in Shenzhen and Guangzhou started to regain growth momentum, while prices in Shanghai, Beijing and Nanjing have started to stabilize.’
About 70 percent of Hong Kong’s homeowners said they would consider buying real estate on the mainland, with 45 percent of them saying they would lease the property. Mainland property developers have stepped up their promotional activities in the special administrative region of Hong Kong.
A total of 75 mainland property projects were publicised to Hong Kong residents in the first three quarters — most being from Shenzhen, the Pearl River Delta region and Shanghai. Improved transport links between Hong Kong and Shenzhen have also encouraged more Hongkongers to buy second homes in Shenzhen, where property prices may be one-fifth of those in Hong Kong.
Source: China Daily