Property

Red-hot housing market in Huizhou

Property market

Property markets in first-tier cities became red-hot in the past few years. As the government introduced stringent control measures in first-tier cities to combat soaring home prices, investors flocked to the neighbouring second- and third-tier cities that have not been affected by the new policies. Among them, Huizhou’s property prices have risen over 50% over the past two years, benefiting from the extension plan of the Shenzhen Metro Line Plan to Huizhou. According to the Huizhou Municipal Bureau of Statistics, the latest home prices in Huizhou is around RMB9,900 per square metre.

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Huizhou is located in the southeast of Guangdong Province which borders Shenzhen on the southwest. There are a number of development zones in the city to encourage the expansion of different industries, including the Huizhou Daya Bay Economic and Technological Development Zone such as automobile production/assembly, chemical production and processing, electronics assembly and manufacturing; and Huizhou Export Processing Zone which supports companies producing electronics, auto parts, textiles and chemicals. In 2009, the government started to plan the connection of the metro system in Shenzhen, Dongguan and Huizhou. The metro line connecting Huizhou and Dongguan opened in March 2016, which makes commuting between the two cities more convenient.

Since the home prices in Huizhou is still low compared with Shenzhen, purchase demand from end users and investors remains relatively strong. At the same time, investment of residential property has surged since 2009 from RMB13.3 billion to RMB59.7 billion in 2016. As such, sales of residential property have increased 85% over the past two years. There are a number of new projects of mass residential property in the Huiyang District and since they are not exempted from the control measures, their average prices are higher than other districts, ranging from RMB10,900 to RMB14,000 per square metre. Prices in Huicheng District, which is restricted by control measures, range between RMB10,000 to RMB11,000 per square metre.

Under the robust economy and increasing household income, end-user demand for residential property in Huizhou will remain strong. At the same time, the development of the Greater Bay Area may boost investment demand in the city. Therefore, transaction volume is likely to remain high and housing prices are expected to continue on an uptrend.

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