Property investors buying more homes in Dongguan
Home buyers in Shenzhen pay an average of 20 percent more for new homes in neighboring Dongguan. The place is becoming a popular spot with Shenzhen property speculators. Apartment buildings bordering Longgang and Bao’an districts were favored more by Shenzhen home buyers since the place is only 90 minutes away from downtown Shenzhen.
Although the prices are 10 to 20 percnet higher than estates found in different parts of Dongguan, they have the same quality. Estates closest to downtown Shenzhen considered first phase apartments costs around 8,000 yuan per square meters. Prices for second phase apartments will rise to 10,000 yuan per square meters. Homes in Fenggang only costs 5,000 to 6,000 yuan per square meters.
Researchers for a real estate agency said that Shenzhen home buyers are going to Dongguan, since prices for homes a re much lower and are not subjected to purchase limits which is imposed in Shenzhen. a new rule was introduced in Shenzhen which limits the number of homes local residents can purchase when the central government made efforts to curb property inflation. The policy prohibits hukou holders from buying a third home. Agents also noted that luxury homes. Villas and small homes that cost around 200,000 or less were much sought after by property investors.
This prompted Shenzhen developers to buy land in the Dongguan area, and seven of the eight land lots sold by the Dongguan government were bought by Shenzhen developers. But some warned that investing in mid range apartments will not be profitable as many expected since many of the people living in the area can’t afford homes.