The city of Zhuhai is connected by land to Macau and Zhongshan, situated in the southern part of the Pearl Delta Region. It was rated as the “most livable city in China” in 2013 and 2014 with reference to the city’s population quality, social and living environment and the city’s infrastructure in the China Urban Competitiveness Report. Apart from this, Zhuhai’s economy is also developing in a strong and steady pace, with a 10% GDP growth recorded in 2015, outpacing the national average of 6.9%.
Property prices in Zhuhai have grown about 7.5% in 2015, with average prices reaching around RMB 14,000 per sqm in January 2016. For separate districts, Hengqi, just a bridge across from Macao’s Taipa, has the highest average price per sqm in the city, partly because of the high percentage of villas in the area. As most properties in the area are luxury villas, prices in the Hengqin district were the most affected by the stock market crash, having fallen over 10% in 2015 to around RMB 34,000 per sqm in January 2016.
On the other hand, prices in the Xiangzhou district, closer to the heart of Zhuhai, did not seem to be affected by the stock market crash and have risen steadily throughout 2015, from RMB 15,000 to RMB 19,000 per sqm, representing an over 25% y-o-y increase, and although the Nanlang district situated in the northern part of the city has a much lower average price, prices in the region has risen over 50% in 2015 to around RMB 8,000 per sqm in January 2016.
Besides rising property prices, average land prices also went up in 2015. Around 368.63 hectares of land were sold in Zhuhai last year, 20% less than the 2014 figure. Yet, the year’s total transaction price amounted to RMB 20.716 billion, representing a 27% y-o-y increase. The near 60% increase in average price for land sold in Zhuhai last year mainly reflected the market’s high expectations for the development of Zhuhai and its property market following the completion of large infrastructure projects, such as the Hong Kong-Zhuhai-Macao Bridge project.
Despite the general destocking trend in China’s property market, Zhuhai’s pleasant living environment together with the city’s developing infrastructure and links with other parts of the Pearl Delta Region and its economic development from the launch of the Hengqin Free Trade Zone, will continue to support property prices in Zhuhai in the coming year.