“A considerable amount of purchasing demand for residential properties in Guangzhou was injected into the market during Q4/2024 primarily owing to the lift of the Home Purchase Restrictions (HPRs) and seasonality issues since September 2024. The total sales volume has exceeded two million sqm for the first time since Q1/2022.”

CARLBY XIE, SAVILLS RESEARCH



Sales hit a 3-year record high

• Guangzhou’s city council promulgated new acts, cancelling the criterion of ordinary and non-ordinary housing and exempting capital value appreciation tax of properties held for two years and above.

• The average loan interest rate for both first- and second-home purchasers was adjusted to 3.1% for the Guangzhou market, effective from October 2024.

• While approximately 1.05 million sqm of new supply was delivered into the market in Q4/2024, down 26.0% QoQ, the sales surged to approximately 2.12 million sqm, up 54.3% QoQ and 30.9% YoY.

• Looking back into the whole year of 2024, both new supply and sales transaction hovered at a low level, decreasing by 24.2% YoY to 4.36 million sqm and 5.9% YoY to 6.03 million, respectively.

• Guangzhou’s first-hand residential market sales price decreased by 7.2% QoQ to an average of RMB37,636 psm by end-Q4/2024.

• In 2024, the total transaction area of residential lands decreased by 50.1% YoY, indicating a yet-to-be-improved purchasing sentiment of most residential developers.