Nansha Primary Property Market Under a Dual Zone Effect
Time flies: Guangzhou Nansha Free Trade Zone has ushered in its third anniversary of listing this April. Three years ago, the Nansha Free Trade Zone, with its own import and export trade, shipping industry and information technology as its main development strategies, has gradually formed synergistic effects with the other two free trade zones in Guangdong— Shenzhen’s Qianhai and Zhuhai’s Hengqin. Amidst the area’s economic development, the impacts of this positioning strategy on Nansha’s real estate have also emerged over the years.
It is well known that first-hand residential transactions in the Nansha Free Trade Zone has gradually cleared up their oversupply issue. The Nansha District saw 80,000 units in new supply last year, against over 90,000 transactions over the same period, highlighting an imbalance between supply and demand in the primary market. However, transactions in Nansha’s primary market still ranked first among the three Guangdong free trade zones, suggesting the housing market is favoured by investors. One of the reasons why the Nansha property market is highly welcomed by investors is that prices are still relatively low. Affected by policies such as restricted purchases and restricted loans, the average price of new residential projects last year was only at RMB 23,000 per square metre. Meanwhile, new residential land plots accounted for over half of the total land plots in Nansha. In addition to residential landbanks, some land plots are also reserved for future commercial use, reflecting diversified development opportunities in the future within real estate.
Thanks to its location, Nansha enjoys the policy support of both free trade zones and the Greater Bay Area of Guangdong. Nansha's thirty-minute direct access to the urban centres of the Greater Bay Area, as well as to major transportation hubs, is also a big advantage. The latest developments including the future development of the property market will most certainly continue to attract investors' attention.