Life of Guangzhou - GZ's Property Prices Keep Falling, Market Set to Plummet this Year

As the conventional high season during September and October draws near, the property market in Guangzhou, South China, continues to shrink.

First-hand housing purchases in the city fell by about 10% last month compared with June, according to the municipal property administration’s statistics.

The average unit price of first-hand properties citywide dropped to 9,122 Yuan (1,322 USD) per square meter in July, down by 4.7% compared with June, while the price of a 90-square-meter or smaller apartment was slashed by 14% in the same period.

A housing estate in Guangzhou. (cnsphoto)

The average housing rate in the downtown district of Yuexiu plunged by 19.5% while rates on the outskirts like Huadu soared by 38%. Tianhe District, where most foreigners live, tops the price chart, with an average of 12,536 Yuan (1,817 USD) per square meter.

Some insiders say property prices in Guangzhou are set to slide downhill this year, and that rates and deals in the coming “Golden months” will continue to decline.

Some developers are speeding up the construction of new housing estates in preparation for the high season coming up in one month. Many estates are ready for sale now.

(By Ronald Li and Stephen Roach)

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