In the nine central districts, total sales volume of new commodity housing increased by 49% QOQ or 12.9% YOY to approximately 2.69 million sq m; meanwhile, the average price grew by 1.5% QOQ or 10.7% YOY to RMB18,453 per square metre (psm), according to the Guangzhou Municipal Land Resources and Housing Administrative Bureau. The publication of infrastructure development plans in April including 11 future metro lines and loosening of tax policies stimulated the residential real estate market. Additional support came from banks in Guangzhou that offered significant discounts on the mortgage interest rate (second only to Beijing). 

The increase in house sales was concentrated in the city’s central areas. The total sales volume in Guangzhou’s six urban districts surged by 66% QOQ or 50% YOY to approximately 1.39 million in the second quarter of 2016, accounting for 58% of the city total. In the three suburban districts, total sales volume increased by 35% QOQ (though was down 10.7% YOY) to approximately 1.30 million m2. The suburban areas registered an increase in the average price of 7.3% QOQ or 10.4% YOY to RMB13,630 psm.

By contrast, the average price in the six central districts declined by 6.4% QOQ or 2.2% YOY due to new projects in Huangpu District, where amenities and transportation are less mature compared to other five central districts, and prices are correspondingly lower. 

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