Cross-border property buy boom 'to grow'
( 2003-12-18 16:18) (HK Edition)
The number of property units
bought by Hong Kong people on the mainland remains stable this year despite the
negative impact of the outbreak of SARS. It is expected to register double-digit
growth in 2004, according to Centaline (China) Property Consultants.
The mainland's continuing robust growth and a string of positive news such as
the signing of a free-trade pact between Hong Kong and the mainland have offset
the gloomy investment sentiment due to the SARS outbreak.
The total transaction of property units bought by Hong Kong people across the
board totalled 18,150 this year, a slight 0.8 per cent drop over 2002, said
Centaline (China)'s director K.K. Lai.
But the transaction value of the property units rose 15 per cent year-on-year
to 9.865 billion yuan (US$1.188 billion) this year, showing a growing
real-estate price on the mainland, Lai added.
According to Centaline China's 2003 review report, the number of people
choosing to buy properties in Shanghai, Beijing or Guangzhou was on the rise,
which indicated more Hong Kong people live and work in these cities.
As for the usage of the property units, vacation-purpose continued to decline
from 56 per cent in 2001 to 36 per cent this year, although it still topped the
list. Nevertheless, nearly one third of people said they bought houses mainly
for investment, an increase of 27 per cent year-on-year.
Lai said the average return of investment on the houses across the border
ranged from 5 per cent to 10 per cent, in contrast to the near-zero saving
interest rate in Hong Kong. "With an improving property regulation on the
mainland, we expect more Hong Kong capital to flow into the mainland's
real-estate market next year."
The property agent forecast mainland-based property bought by Hong Kong
people would grow by 20 per cent to 21,800 units in 2004. The corresponding
transaction value will reach 11.98 billion yuan (US$1.44 billion), up 21 per
cent.
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