How about buying an apartment in Guangzhou? ——Latest market analysis and trend interpretation in 2023
Recently, the Guangzhou apartment market has become an investment hotspot. This article combines hot topics and data from the entire Internet in the past 10 days to provide you with an in-depth analysis of the purchase value, policy risks and future trends of Guangzhou apartments.
1. The latest developments in Guangzhou’s apartment market (hot spots in the past 10 days)
| hot topics | Discussion popularity | key data |
|---|---|---|
| Rumors about Guangzhou relaxing apartment purchase restrictions | Weibo reading volume: 12 million+ | Apartment transaction volume in Huangpu District increased by 18% month-on-month |
| Purchases from Hong Kong and Macao customers surge | Baidu Index week-on-week +65% | The average price of apartments in Zhujiang New Town is 82,000/㎡ |
| Thunderstorm incident in long-term rental apartment | Douyin topic views 8 million+ | Guangzhou apartment vacancy rate is 12.7% (industry warning line 10%) |
2. The core advantages of buying an apartment in Guangzhou
1. Lower price threshold:Compared with houses, the average price of apartments in Tianhe District is only 60%-70% of that of houses in the same location, and the down payment ratio is as low as 50%.
2. No purchase limit policy:Guangzhou still implements an unrestricted apartment purchase policy, and foreign investors can purchase freely. Recently, the proportion of buyers from Hong Kong and Macao has increased to 23%.
3. Higher rental returns:The rental return rate for apartments in core areas can reach 3.5%-4.5%, which is significantly higher than the 1.8%-2.5% for residential buildings.
| area | Average apartment price (yuan/㎡) | rental yield |
|---|---|---|
| Tianhe CBD | 65,000-85,000 | 3.8%-4.2% |
| Pazhou | 45,000-60,000 | 4.1%-4.5% |
| Nansha | 18,000-25,000 | 5.2%-6.0% |
3. Potential risks and precautions
1. Policy risks:Guangzhou introduced the "March 30 New Deal" in 2017, which caused the apartment market to freeze for two years. We need to be alert to recent changes in policy trends.
2. High transaction costs:Second-hand apartment transactions are subject to the difference of 20% personal income tax + 5.6% value-added tax, and the total tax can reach 15%-25% of the house price.
3. Usage restrictions:Most apartments cannot be settled and are not eligible for school districts, and water and electricity bills are charged at commercial standards (40%-60% higher than residential ones).
4. Professional advice
1.Choose carefully for your own stay:Suitable for singles or people in transition, it is recommended that families give priority to residences for long-term living.
2.Preferred areas for investment:Focus on the three-core intersection area of Zhujiang New Town, Pazhou, and Financial City, and be wary of the traps of apartments in outer suburbs.
3.Fund calculation:Make sure that the monthly rent can cover more than 70% of the monthly payment, and it is recommended that the holding period be no less than 5 years.
| investment type | Recommended holding period | Expected annualized return |
|---|---|---|
| short term speculation | Not recommended for high risk | -15% to +30% |
| medium term holding | 3-5 years | 5%-8% |
| Long-term rent collection | More than 8 years | 8%-12% |
5. Market Outlook in 2023
1.Supply increases:It is expected that 15 new apartment projects will enter the market in the second half of the year, with a total supply of more than 5,000 units.
2.Product upgrades:The proportion of LOFT units has increased to 45%, and apartments with gas have become a new selling point.
3.Price differentiation:High-quality apartments in core areas may rise by 5%-8%, and suburban projects may face price wars.
In summary, Guangzhou apartments are suitable for investors with a certain risk tolerance. It is recommended to conduct on-site inspections of at least three similar projects before purchasing, and consult professional legal professionals to review the contract terms. Under the current market environment, it is more prudent to give priority to existing or quasi-existing housing projects.
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