Explainer | Which city within the Greater Bay Area should Hong Kong’s residents consider for real estate investment?
- The biggest barrier to property investment in the Greater Bay Area (GBA) is the legacy price-control regulation left from the 2017-2018 campaign to cool real estate prices
- Eligible buyers are limited to one residential property each. First-time buyers must put down at least 30 per cent of the property’s value, mortgaging the remainder
For all the publicity and government commitment lavished on the “Greater Bay Area” (GBA), the nine cities in southern China adjoining Hong Kong and Macau actually offer limited investment opportunities and upside for the city’s residents.
The most daunting barrier that Hongkongers must overcome is the legacy price-control restriction left from the 2017-2018 campaign by local authorities to tame runaway real estate prices.
That means Hongkongers must have lived or worked in the GBA for up to five years to be eligible to own property. Only two cities, Zhaoqing and Huizhou – the furthest from Hong Kong – are exceptions to the rule.
In the remaining seven mainland cities, buyers without the local residency permit, or hukou, must contribute every month to the local social security fund, at least six months in smaller cities like Zhongshan, and up to five years in Guangzhou and Shenzhen, to be eligible to buy property.
Eligible buyers are limited to one residential property each. First-time buyers must put down at least 30 per cent of the property’s value, mortgaging the remainder. Second-time buyers are eligible for even less in bank loans. There is also a sales moratorium of between two to three years, to deter speculation.
