Incoming Hong Kong residents won’t boost home prices: analyst
New rules will drive resettlement from Hong Kong, Macao and Taiwan, but experts say it won't be enough to spike housing prices
An increasing number of people from Hong Kong, Macao and Taiwan are expected to move to the mainland China, especially the Greater Bay Area of Guangdong, but insiders don’t believe it will push up housing prices, Yicai.com reported.
According to the latest rules released by the State Council, from September 1, residences of Hong Kong, Macao and Taiwan can apply for a special residence permit to move to the mainland, as long as they have legally stable employment or residence, or school admission.
Those who obtained the residence permit will enjoy the labor and employment opportunities as well as social insurance in mainland China, in accordance with the law.
Noticeably, those who hold the permit can deposit and withdraw their housing provident funds to buy homes in mainland cities. This could release Hong Kong residents who have been suffered from years of high housing prices.
Take Shenzhen, which has higher housing prices in the Greater Bay Area. The average price of Shenzhen residential housing is around 55,000 yuan (US$8069.88 dollars) per square meter, compared to that of around 140,000 yuan in Hong Kong, said He Qianru, director of the National Research Center of Midland Holdings.
He also estimates that the number of Hong Kong and Macao residents will not suddenly increase, but will slowly migrate to the mainland. The resulting amount of housing purchases will likely not be large enough to push up local housing prices, he said.