Colliers International, Guangzhou

A new high price for land plot has appeared on 19 July 2007. A property development company successfully tendered a new plot of land for commercial purpose in Pearl River New City. The bid concluded at 1.09 billion which was five times of the starting price. The price of RMB11, 912 per sq m has become the highest record in Guangzhou. From 2006 to 2007, new high prices have been recorded for land plots in Guangzhou market. Nan Fung Group successfully concluded the bid of a land plot in Pazhou with RMB 10,037 per sq m in December 2006. Whilst on 9th May 2007, land plots in Pearl River New City achieved new high prices of RMB 8,358 per sq m and RMB 9,568. Two months later, the highest price of land plot has been replaced by RMB 11,912 per sq m.

The price of land plot has increased dynamically in Guangzhou. The experts shared their different views on the effects of the price increase on real estate market. Negatively, high land plot price will affect the consumers’ purchasing power and bring along irrational increase in property price. On the contrary, some viewed that the high price of land plot will drives the price of neighboring properties up. 

Generally, the market is moving in an upward trend in the recent years, and has attracted the attention of many developers. More Hong Kong developers have been investing in Guangzhou and this is one of the reasons for driving the high land plot price. At present, the high average property price of RMB 25,000 per sq m in Shenzhen has pushed some investors to Guangzhou instead. This is another reason of the high land plot price in Guangzhou as well.
 
Some property professionals suggested that to achieve a breakthrough in the real estate market, land tenders of competitively priced land plots are necessary.

About Colliers International

Colliers Macaulay Nicolls Inc. (CMN), operating as Colliers International, is a leading international real estate services company that provides a full range of services to commercial real estate users, owners and investors worldwide.  These services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research.  Through greater knowledge and specialization, CMN strives to accelerate the success of all its clients, partners, professionals, management and staff.  CMN is a FirstService Company (Nasdaq: FSRV; TSX: FSV.SV).  CMN is the largest member firm of Colliers International, one of the world's top commercial real estate services organizations, with revenues over US$1.6 billion and 266 offices in 56 countries.  CMN can be found on the Web at http://www.colliersmn.com.

Contact Information

For further information please contact:

Ada Feng, Marketing & Communication Manager
Guangzhou, Colliers International
Tel: 020-38193870   
Email ada.feng@colliers.com

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