I was invited to attend a seminar on Hongkongers buying homes in the Greater Bay Area, organized by a mainland-capital bank, at a hotel at the Shenzhen border checkpoint.
Most of the participants were, naturally, Hongkongers. There were refreshments and a lucky draw too. At the event, I bumped into a friend who works in the financial sector in Central.
Mainland brokers, mortgage intermediaries, and bank representatives spoke on related procedures and the state of the market there, which has surged in recent years at a rate that could even be faster than in Hong Kong.
The head of the Beike property platform in Shenzhen noted that mainlanders are not hesitant to buy properties using leverage, with a recent survey showing 12 percent of home buyers are making monthly mortgage repayments of 50,000 yuan (HK$55,000). The percentage was even higher - 15 percent - in the previous year.
As a proportion of average income, this level of mortgage expenses is high, or even too high.
The speakers believe buyers in Shenzhen and surrounding areas are aggressive because people have been making money from real estate. Property prices have been going up in all districts, and people think they will not come down.
For example, the price of flats at Xufei Garden, which is not a recent project, rose 20 to 30 percent in a few months because it is "fortunate" to be in a famous school zone, which triggered a buying frenzy among parents.
Like Hong Kong, school-oriented properties have become popular in the mainland. Homes in the school district of the most well-known primary school in Shenzhen are prized at one million yuan higher than comparable units in other districts. Their value rivals homes in districts located near famous schools in Hong Kong.
Agents said the social situation in recent months, coupled with the central government easing restriction on Hongkongers buying property in the Greater Bay Area, has seen droves come to the mainland to view properties.
During Christmas, which is not a public holiday in the mainland, the number of Hong Kong travelers visiting the mainland surged at immigration checkpoints. These are believed to be people heading north to spend or look for property investment opportunities.
Siu Sai-wo is publisher of Sing Tao Daily
