Since border reopening, Hong Kong peoples’ suppressive demand to travel overseas are fully recovery. Macao and Shenzhen which are Hong Kong adjacent city firstly had been benefiting from the strong expenditures of Hong Kong peoples.
Those cities are crowded with tourists in tourist attractions, restaurants and souvenir shops. In addition, mainland property developers start to provide new projects to draw Hong Kong peoples’ attention and hope to close the deals as much as possible.
After three years of border closure, China property market has been undergoing in a downturn. Moreover, newly completed first-hand projects have acuminated to high level so most developers cut the sales price to attract market attention. The long-gone Hong Kong customers have retuned to the market and have found the discounted home prices which are very attractive.
Nowadays, many well-known China property companies have been suffering from excessive debts, and their new projects are still in danger of incompletion. As smart investors, one should be very careful to avoid to purchase such kinds of these new projects.
If one really want to purchase, only choose to buy the projects of central enterprises or state-owned enterprises. To further reduction risks, it is best for the buyers to purchase completed premises. In fact, the risks of buying incomplete projects are uncontrollable.
In addition, Hong Kong buyers should refuse to purchase of concept homes, such as the projects in future hub, adjacent to the new highway or the location of a new bridge entrance. However, most of these projects are located in remote areas and are lack of basic facilities to support normal life. Besides, the rental markets are also inactive, so even the owners rarely move in after the completion of these projects. Finally, these projects quickly becomes another semi-ghost town.
The most valuable property in China are basically the same as in Hong Kong, which are the famous school district premises. If the new developments are located in the good school districts, the property price and rental value are guaranteed. Taking Zhuhai as an example, since last year, the housing price in famous school districts have adjusted down by 5 to 10%. On the other hand, the adjustment prices in bad credit school districts have come down more than 20%.
In order to increase its chances to changing hands of these units, one should try to buy a small sized three-bedroom and two-toilets unit, of which the area is less than 100 square meters (1,000 sq.ft.), such urban small three-bedroom is exactly the basic domestic demand. The total prices of these units are lower and the location are convenient. Furthermore, these units’ leasing and sales market are very active, so they are more easier to cash out.
Hong Kong emigrants to China should understand that the majority of these retirees will move back to Hong Kong when they are over 75 years old due to health problems. In fact, the free and quality medical treatment in Hong Kong is no substitute in China. If Hong Kong retirees wrongly bought in inactive mainland properties, this will seriously weaken their financial income in old age.