It is especially remembered that in November 2019, after the meeting of the Guangdong-Hong Kong-Macao Greater Bay Area Construction Leading Group, it agreed with the Hong Kong government on sixteen measures in three categories that benefit Hong Kong people. Among them, there are seven measures to facilitate Hong Kong people.
One year after the agreement, under the goal of the national plan for the Greater Bay Area, the overall transaction volume in the residential property market has returned to the pre-pandemic level by the middle of the year, despite being affected by negative factors such as the Sino-US trade war and the COVID-19 crisis.
As a result of this, this issue will first sort out the nine cities’ home purchase policies; whilst the next January’s issue will summarise the performance of land and property sales market, alongside the future development prospects in the short, medium and long term. If you are interested, perhaps could also keep an eye on the coming issue.
In terms of current home purchase policies, Hong Kong people’s investments in commercial housing in the nine cities of the Greater Bay Area are subject to certain restrictions on purchases, loans, and sales. Guangzhou and Shenzhen, which are popular investment places for Hong Kong people, both cities have home purchase restrictions.
Being divided into Eastern and Western Districts, Zhuhai is limited to have two purchases, of which one can only purchase one unit of home at most in the Eastern District. Meanwhile, the purchase of a new home in Zhongshan requires six months of social security records, but the purchase of second-hand home has not been restricted. In fact, some cities also have a limited sales period of up to three years. A property owner may need to pay additional taxes, if he or she needs to change hands of a property in a short period of time upon the purchase.
Among the nine cities, Zhaoqing alone does not impose any restrictions on purchases or sales. Foshan and Dongguan, where economic growth is expected to be strong in the future, both have restrictions on the purchase of one home unit, as well as the requirement to present a year-long work certificate, residence certificate, or business license, and a purchase restriction policy that requires a residence permit, respectively. Generally speaking, for Hong Kong and Macau residents, the nine cities have further relaxed their housing purchase policies in recent years, which include exempting taxation, residence permits, and social security certificates, and even enjoying the social treatment of mainland residents. However, local policies may be adjusted going forward, and it is recommended to pay more attention before a home purchase.