Property Prices Increase due to Mega Project
With the launching of the Hong Kong-Macau-Zhuhai Bridge, all other property prices around the area are projected to catch up with Hong Kong’s costly property prices.
Just this week, Beijing launched the longest bridge-tunnel connecting Hong Kong to Mainland China. Spanning 34 miles, the bridge reduces the travel time from Zhuhai to Hong Kong to 30 minutes, as compared to the previous four-hour drive.
This $20 bn project is part of China’s “Greater Bay Area” plan which aims to connect all Hong Kong and Macau to 11 cities in China’s southern region. Signalling a further capital inflow, living costs, as well as property prices in other areas, will inevitably rise.
Will Property Prices Around Other Areas Equal that of Hong Kong?
Hong Kong is widely known to have excessive property prices. Expecting to have a surge of people going to the already crowded Hong Kong, the property prices might once again shoot up! However, the Hong Kong government has made a policy that almost doubles the tax of vacant flats. As a consequence, properties are slowly shrinking in size and price for it to sell faster.
Nevertheless, Hong Kong home prices might still go up due to the surge of people.
On the other hand, CBRE reported that Shenzhen will most likely attract the most population since the Greater Bay Area plan will enable the flow of capital, talents, and information. Consequently, property prices in Shenzhen might catch up with those in Hong Kong.
Guo Du Real Estate associate director Raymond Kwok, further estimates that due to the shortened travel time, the residential property market in Macau might experience a 5 – 10 % price increase. Retail property prices, he added, might also have a 30 – 50% increase.
The South China Morning Post said that Macau’s property prices reached HKD 10, 4333 per square foot for the first three months of 2018. Meanwhile, Hong Kong has HKD 12,833 per square foot in the same period.
Neighbouring areas such as Dongguan, Foshan and other western parts of Guangdong will also benefit from capital inflows from emerging industries along the Pearl River area. In general, China property prices are very likely to increase.
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