National GDP growth reached 6.7% in 1H/2016, as the economy continued to grow steadily. The investment in real estate saw a steady rise and although the indexes remained high, there was an obvious decline in the increase rate. The growth of national real estate investment increased by 6.1% YoY and was down by 0.9 of a percentage point (ppt) compared with the rate in May. The residential investment market occupied a high proportion of 66.8%. 

Benefitting from a variety of favourable policies rolled out by the government, the city’s residential market welcomed an increase in growth. City-wide transaction volumes increased 72.44% to 33,222 transactions, surpassing the number from last year and reaching 2,945,200m2. 

As of 30 June 2016, the city’s market stock decreased by 15.4% to 32,549m2 while 32,222 transactions were completed. As a result, supply and demand will be unbalanced. Transaction prices saw a sharp increase due to a series of favourable policies. The city-wide average price in the residential market increased 2.14% QoQ and 25.06% YoY to RMB16,432 per m2. The transaction price of firsthand residences has shown strong growth momentum and surpassed that of second-hand residences since February 2016. 

There was a noticeable change in the city’s residential market. Although 54% of transactions occurred in the western area, investors were the main force behind this housing boom. As housing prices continue to grow in the main urban area, many people are forced to move out to the suburbs where property is more affordable. 

In 1H/ 2016, the western area became a hotspot for investment due to limited available land in the main urban area. The Doumen district has the most saleable projects, of which the price of firsthand residences increased 7.5% QoQ and 57.5% YoY to RMB11,380 per m2. The Jinwan district held the highest housing price in the western area. The price of first-hand residences increased 3.9% QoQ and 55.5% YoY to RMB13,069 per m2. The price of first-hand residences in Hengqin increased 0.87% QoQ to RMB41,596 per m2. 

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