Mainland China’s real estate prices have become a major draw for Hong Kong buyers who are seeking value for their money. These potential homeowners are no longer willing to wait on the sidelines, as they find tangible investment opportunities in the mainland’s property landscape.
There is an influx of Hong Kong property tours in Guangdong’s Zhongshan area. The increase in Hong Kong investors trooping to mainland property markets has been linked to the ‘northbound policy’ enacted last year, which has seen a surge in Hong Kong real estate entities in some projects.
Interest is not limited to Zhongshan; a survey conducted by Bank of China (Hong Kong) in 2021 reports that 46% of respondents are eyeing properties in Greater Bay Area cities such as Shenzhen and Guangzhou. Additionally, the cities of Zhuhai and Huizhou have become popular choices for property seekers on international media platforms.
Hong Kong buyers are increasingly looking for properties for retirement, migration, or holiday homes, rather than for speculation, which used to be the majority motive. These buyers are venturing beyond traditional Hong Kong enclaves to more remote and sometimes unpopular districts or even those areas where property values have plummeted. Despite skepticism from some holding onto their money, eager buyers are undeterred, and some suggest that the inflow of Hong Kong buyers is revitalizing the property sector.
Moreover, Hong Kong’s challenging housing scenario, characterized by excessively high prices and cramped living conditions, has paved the way for the appealing and spacious housing options available across the border. In stark contrast to the hardships encountered in Hong Kong – such as the exorbitant costs associated with owning a small and unsatisfactory space – the mainland offers a reprieve. The luxury of affordable and large apartments, coupled with the absence of Hong Kong’s constraints, makes the promise of a better quality of life a decisive factor for these buyers.
The ease of transitioning to mainland China for Hong Kong residents has significantly improved thanks to enhanced transportation links like high-speed rails and forthcoming infrastructure like the Shenzhen-Zhongshan Bridge. These developments have made the prospect of a cross-border lifestyle not only conceivable but also convenient. As restrictions for Hong Kong buyers in the mainland have been largely lifted, many enjoy equivalent privileges to local residents, such as favorable housing loan rates and lower initial down-payments.
Looking ahead, optimism underpins the actions of Hong Kong buyers who are taking advantage of the softening mainland real estate market to secure properties. Where some see potential financial risk, others perceive a timely and strategic decision to invest in a market poised for recovery. For many of these buyers, a future in mainland China represents not just a savvy economic decision, but an improved standard of living that aligns with their criteria for success.
