A Steady Upward Trend in Jiangmen’s Home Sales Market

江門住宅呈穩中有升趨勢

Although Jiangmen’s transaction volume in the second half of 2018 continued to be low, the average price per square metre had increased by more than RMB 1,000 per year. The city’s average transaction price in the first 11 months of 2018 had risen by 17.2% year-on-year to RMB 8,348 per square metre. The overall trading volume was mainly concentrated in properties ranging from RMB 5,000 to RMB 10,000 per square metre. The total number of transactions plunged by 23.6% year-on-year to 47,704 units. These figures reflect the uncertain market outlook and a slowdown in developers’ home sales. The new home supply saw a rebound only in April, May and at the end of 2018, leading to low trading volumes. The first-hand housing market was affected by many factors, such as strict policies, non-peak seasons and a cooling in the land market. According to transaction data from Jiwu’s webpage, the price premium between first- and second-hand home prices had narrowed to approximately RMB 511 per square metre in September 2018. Since then, new supplies have started to resurrect, narrowing down the difference in average unit rate to a general level of RMB 1,500 per square metre.

As of mid-december, Jianghai District and Heshan City have performed brilliantly, with home prices rising by 34% year-on-year and 32% year-on-year respectively, to RMB 11,319 and RMB 8,037 per square metre, respectively. Second-hand home prices in Enping City and Xinhui District were also outstanding. These rose by 36% year-on-year and 34% year-onyear respectively, to RMB 6,073 and RMB 8,466 per square metre, respectively. At the same time, Pengjiang District recorded the highest prices at RMB 12,756 per square metre, up only 6% year-on-year. Riding on development opportunities in Guangdong, Hong Kong and Macao under the Greater Bay Area Initiative, Pengjiang District is expected to drive the development of emerging industries and urban economy; Jianghai District is expected to lead innovation and development in Jiangmen City and give play to the advantages of national high-tech zones; and green development has become the main theme of Enping city, which expects to improve the quality of parks for industrial sector development. It is worth mentioning that Enping City is the only area among the other three cities and four districts of Jiangmen with home price inversion. The overall property price trend in the next six months is expected to stabilise with some upside potentials.