Shantou Property Express (II)

汕頭樓市速遞（二）

In this issue, we continue to track the development of major infrastructure projects in Shantou and the performance and prospects of new home sales in the city. The city completed investment in the construction of transportation infrastructure in the first half of this year, with a year-on-year increase of 46.8% to RMB 6.46 billion, realising half of the annual investment target. Construction projects for interconnectivity and intercommunication in various areas of Shantou have also been carried out in full swing. Firstly, the Shantou Bay Tunnel project in the Inner Bay area, with an estimated investment of more than RMB 5.7 billion, can quickly realise the expansion of the south and upgrading of Shantou’s main urban area, offering new opportunities for the city’s development. Secondly, the construction of the Niutianyang Expressway will form a western traffic artery connecting the two sides of the Jiangwan New District, becoming important transportation links for residents along the line and for economic development. Lastly, the road to the eastern extension of Zhongshan East Road is a long-distance urban expressway running east to west, an important channel connecting Shantou central with Chenghai district and the East Coast New City, aiding the development of the entire overseas Chinese experimental district.

Over the first half a year, Shantou’s overall property market showed a warming trend. According to Fenghuang’s website, the total amount of first-hand transactions exceeded RMB 15 billion; residential transactions reached 10,343 cases, which was 30% lower than the first half of 2018. Fortunately, residential sales in June resumed momentum. Districtwise, Longhu district ranked the first, accounting for 38% of the total transaction volume. Jinping district, ranking second in transaction volume, has become a new market focus after the opening of Wanda Plaza. As previously mentioned, the red-hot Jinfeng Peninsula residential land plot was well received by many property developers, reflecting their optimistic attitude towards Jinping’s prospects. Meanwhile, the Jinping West district has several old renovation projects. It is expected that the district will become the main market for primary residential property in the next three to five years. The average residential price is currently at RMB 9,350 per square metre, while in the East Coast and Longhu main city area it is around RMB 10,000 per square metre. It is expected that the Asian Youth Games will be held in Shantou city in 2021, and the main hall of the Asian Youth Club will be in the Tagangwei area of the East Coast New City. Integration into the Greater Bay Area is indeed beneficial for Shantou and will energise the real estate market in the city.