According to Savills, in the fourth quarter, developers in Guangzhou released more residential supply to stimulate market performance and hit end-of-year quotas.

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The immediate result was an increase in both quarter-on-quarter (QoQ) transaction volume and average unit prices. City-wide first-hand residential transaction volumes in the nine districts, with purchase limitations, increased by 17.1% QoQ to approximately 1.73 million sq m, but down 47.3% year-on-year (YoY). The average transaction unit prices increased 11.3% QoQ and 6.1% YoY to RMB21, 259 per sq m. Prices drifted higher due to a few high-end residential transactions in the downtown area. 

The Guangzhou residential market is experiencing diversified development. Two districts without housing purchase limitation, Zengcheng and Conghua, registered a significant share (33.9%) of the transaction market in 2017. Residential development will gradually shift to suburban areas, as urbanization and suburban development continue to be main political themes. 

Guangzhou residential market was affected by tighter regulation policies, as can be seen with the much lower overall transaction volumes in 2017, compared with 2016. It is expected that regulatory policies will continue to be effective in 2018; price growth will continue to be low, while transaction volume will also be lower than the recent historical average. 

Click here to download the Savills Guangzhou Residential Sector Briefing January 2018

For more information about the Guangzhou residential property market email Woody Lam – Managing Director,  Savills Southern China via the contact details below. 

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