Mortgage applications in the area have risen 40% over the past year.
A growing interest in the Greater Bay Area (GBA) is being seen amongst Hong Kongers, as mortgage firms have seen applications increase by more than 40% year-on-year in April, the mReferral Mortgage Brokerage Services said.
Citing data from Meridian Mortgage Referral, it was reported that more than half, or 51%, of Hong Kong residents have purchased first-hand properties in Shenzhen area. Some 23.1% were in Zhongshan and 15.4% were in Zhuhai.
A rapid growth in the acquisition of properties and mortgages in the Greater Bay Area is also expected amongst Hong Kong residents once the pandemic is over.
In the same statement, ICBC (Asia) said Zhuhai and Zhongshan are the two most popular cities for Hong Kong residents for properties. The cities accounted for 60% and 25% of the total loan applications, respectively, with an average loan amount of $1.5m.
“With the gradual implementation of a series of Greater Bay Area convenience measures…, the Guangdong-Hong Kong-Macao Greater Bay Area will provide a livable and business-friendly ‘one hour’,” Liang Cui-er, general manager of ICBC (Asia) Retail Business and Wealth Management Department, said.
“The ‘living circle’ has gradually formed, attracting a large number of Hong Kong people to work and live in the cities in the region, and in recent years, the demand for loans for property purchases in the local area has increased day by day.”
Rapid development of the GBA will likely drive up property price this year by 5-8%, Midland Group Executive Director and CEO of China Department Zhang Jincheng said.
