Tighter rules, sky-high prices in Shenzhen will send homebuyers flocking to ‘investor paradise’ Huizhou, say analysts
- Huizhou, in southern Guangdong province, has seen home prices soar but it remains far more affordable than nearby Shenzhen where new restrictions have made buying harder
- The journey time between the two bay area cities is set to be halved next year, making Huizhou’s booming property market an even more attractive option for Shenzhen investors
The southern Chinese city of Huizhou could become a “paradise” for investors from nearby Shenzhen after the latter tightened its rules for home purchases last week, and with the travelling time between the two cities set to be cut by half next year.
Home prices in Huizhou saw the second-biggest gains in mainland China, climbing 6.7 per cent between March and June, when sales offices reopened in the wake of Covid-19 lockdown, according to Centaline Property’s Greater Bay Area (GBA) price index. But they are still about a quarter of the prices in Shenzhen, whose house prices shot up 8 per cent in the same period.
Huizhou, where there are no restrictions on home buying, is one of three cities that are at their highest levels since March 2016 when Centaline started gathering home prices in the bay area.
“People in Shenzhen are known for their active investment in stocks and property. Last week’s newly introduced restrictions on home purchases for local residents will spur property investors to look for alternatives in nearby cities like Huizhou,” said Andy Lee Yiu-chi, chief executive for southern China at Centaline Property Agency.
From last week, residents with “hukou” in Shenzhen will be only be allowed to buy a home if they have held the so-called local household registration paper for more than three years, according to a statement published by the Housing and Construction Bureau.