Pearl River Delta Leading Home Price Increases in 2021

iFeng: 2021年开年，珠三角房价涨幅为何全国居首?

According to statistics from the Housing Big Data Project Group of the Academy of Financial Strategy Research of the Chinese Academy of Social Sciences, the price of new houses in Dongguan increased by more than 30% last year, leaving hot cities such as Shenzhen and Hangzhou behind.

From the overall perspective, the Pearl River Delta region is located at the forefront of my country's coastal opening up, with obvious geographical advantages, strong economic strength, and a gathering of innovative elements, making it the core city cluster with the most development potential and space. With the continuous promulgation and implementation of relevant plans in the Guangdong-Hong Kong-Macao Greater Bay Area, more talents are attracted to work in the Greater Bay Area, develop and purchase houses.

Considering the driving effect of housing prices in Shenzhen, Guangzhou and other cities, the supply and demand of the local property market, and the intensity of regulation, it is not difficult to understand that the housing market in the Pearl River Delta region has become more popular.

Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, said in an interview with China News Service that the increase in housing prices in the Pearl River Delta is mainly driven by the two core cities of Shenzhen and Guangzhou. Compared with the Yangtze River Delta region where the energy level distribution of cities is relatively balanced, Guangzhou and Shenzhen are the absolute cores of the Pearl River Delta urban agglomeration. The increase in housing prices in these two cities will also form a strong driving force for other cities in the region.

Take Shenzhen as an example. Since last year, second-hand housing prices in Shenzhen have "led the rise" for many months. Data released by the National Bureau of Statistics show that in January this year, second-hand housing prices in Shenzhen rose 15.3% year-on-year, ranking first among 70 large and medium-sized cities. The housing big data project team of the Academy of Financial Strategy Research of the Academy of Social Sciences recently released the median house price of big data in January, which also showed that the median house price in Shenzhen in January was the leading country in the country, which was significantly higher than that of Beijing, which ranked second.

Li Yujia said that Shenzhen frequently sees second-hand house owners raising prices, and second-hand house prices have risen rapidly. In addition, the price of a second-hand house is "upside down", which has caused Shenzhen to fall into a cycle of rising prices of a second-hand house in recent months.

Since last year, central banks of various countries have greatly released water, and the price of housing prices in core cities has increased. Especially in places where the economy is basically good but the real estate control policies are relatively loose, houses are sought after by various sources of capital, and the prices are naturally "rising."

Looking at Guangzhou again, on the one hand, since last year, cities such as Shenzhen and Shanghai have increased their property market control policies, but the property market in Guangzhou has not tightened significantly. On the other hand, since the end of last year, Guangzhou has loosened the adjustment of the talent landing policy, and the settlement policy in the seven peripheral areas is relatively loose. This has brought a certain stimulus to the purchase of houses by foreigners. This has also led to several areas outside Guangzhou including Nansha since last year. Wait for the price of new houses to rise rapidly.

In addition, the purchasing power spillover caused by high housing prices in Shenzhen has to a certain extent promoted the property market in surrounding cities such as Dongguan, Guangzhou Nansha, Zhongshan, Dongguan, and Foshan. Li Yujia pointed out that in fact, from the perspective of the Greater Bay Area, the real purchase restrictions are concentrated in the core areas of Shenzhen, Dongguan and Guangzhou. Other cities and regions have basically liberalized purchase restrictions or have weak policies, which cannot really block the influx of housing purchase funds.

In the Yangtze River Delta, cities such as Hangzhou and Shanghai have all introduced and implemented regulatory policies this round, and the increase in housing prices has shown a narrowing trend.