Guangzhou – January 2022

Residential
MARKET
IN
MINUTES
Savills Research

Savills team
Please contact
us for further
information
RESEARCH

James Macdonald
Senior Director
China
+8621 6391 6688
james.macdonald@

Serviced apartment rents slip savills.com.cn

Carlby Xie
The first-hand residential property market saw an uptick in prices. Director
Southern China
+8620 3665 4874
carlby.xie@
• New supply of the Guangzhou first-hand residential sales • With Guangzhou’s continued population growth, rigid
savills.com.cn
market decreased 24.0% quarter-on-quarter (QoQ) to 2.1 purchasing demand should remain significant. Policy control
million sq m as of 17 December 2021, as developers postponed will continue to tighten while the price growth of the residential CENTRAL MANAGEMENT
new projects launches to the end of December 2021 and the property market should stay relatively steady.
upcoming Spring Festival. Alvin Lau
Managing Director
• Property purchasers continued to hold a strong wait-and-see Guangzhou
attitude, and the citywide transaction volume decreased for +8620 3665 4888
alvin.lau@savills.com.cn
four consecutive quarters in 2021 to 1.6 million sq m as of
Q4/2021.
“Although financing conditions Savills plc

relaxed moderately with

Savills is a leading global real
• The citywide average transaction price increased 6.9% estate service provider listed on
QoQ to RMB 40,839 per sq m mainly due to the completed the London Stock Exchange. The

expedited loan approval and

company established in 1855, has
transactions of mid- to high-end projects in urban areas. a rich heritage with unrivalled
growth. It is a company that leads

release in Q4/2021, property

rather than follows, and now has
over 600 offices and associates
• Leasing demand for serviced apartment properties continued throughout the Americas, Europe,
to subdue and the citywide vacancy rate edged up by 0.3
purchasers continued to hold a
Asia Pacific, Africa and the Middle
East. This report is for general
percentage points (ppts) QoQ to 24.6% as a result. informative purposes only. It may

strong wait-and-see attitude

not be published, reproduced or
quoted in part or in whole, nor may
it be used as a basis for any
• The citywide average serviced apartment rent decreased 2.2%
for property acquisition.”
contract, prospectus, agreement
QoQ on a rental index basis to RMB218.5 per sq m per month. or other document without prior
consent. Whilst every effort has
been made to ensure its accuracy,
CARLBY XIE, SAVILLS RESEARCH Savills accepts no liability
whatsoever for any direct or
consequential loss arising from its
use. The content is strictly
copyright and reproduction of the
whole or part of it in any form is
prohibited without written
permission from Savills Research.

savills.com.cn/research 1
 Residential

MARKET OVERVIEW rent decreased 2.2% QoQ on a rental index

GRAPH 1: Nine Districts’ Residential Transaction
Volumes And Prices, Q1/2017 to Q4/2021 The consecutive decreases in the sales basis to RMB218.5 per sq m per month.
transaction volume since Q1/2021 and the
Supply (LHS) Absorption (LHS) Price (RHS)
cooling land sales market since Q3/2021 OUTLOOK
4.5 45
in the Guangzhou residential sales market Guangzhou maintains a vibrant economic
4.0 40 prompted the government to take actions development, supported by relatively
3.5 35 in stabilising the market development. diversified economic industries, attracting
In Q4/2021, financing conditions relaxed many talents and workers to settle down

thousands RMB per sq m

3.0 30
moderately with expedited loan approval in the city. This can be reflected by the
million sq m

2.5 25
and release. The government also lowered 47.1% growth in the population over the
2.0 20
and/or reduced pre-conditions by reducing last decade, according to the seventh
1.5 15 land sales prices and lifting the sales price national census. With Guangzhou’s
1.0 10 limit of future developments to encourage continued population growth, rigid demand
further land acquisitions. for residential properties either for the
0.5 5
first purchase or upgrade, should remain
0.0 0
SALES MARKET significant. Policy control on the market
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1

Q1

Q1
Q2
Q3
Q4

Q2
Q3
Q4

Q2
Q3
Q4

2017 2018 2019 2020 2021 As some developers chose to launch new development is expected to remain tight,
Source CRIC, Savills Research
projects at the end of December and the especially in terms of home purchase
upcoming Spring Festival, new supply of restrictions and financing conditions. In
the Guangzhou first-hand residential sales effect, price growth of the Guangzhou
market decreased 24.0% QoQ to 2.1 million residential property market should stay
GRAPH 2: Serviced Apartment Occupancy Rates sq m as of 17 December 2021. Although relatively steady. As per Guangzhou’s
And Rental Indices, Q1/2017 to Q4/2021 serviced apartment property market, a new
mortgage rates of some banks decreased by
20 basis points (bps) to 5.65% in Q4/ 2021, project with 228 units is scheduled to enter
Occupancy rate (LHS) Rental index (RHS)
100% 115 many property purchasers continued to hold the market in 2022, which is projected to
a strong wait-and-see attitude, hoping for a bring about a mild increase in the citywide
95% 110
better policy package in 2022. The citywide average vacancy rate. However, the strategic
90% 105 first-hand residential property transaction shift of clientele focus is expected to
volume decreased for four consecutive stabilise rental performance in 2022.
85% 100 quarters in 2021 to 1.6 million sq m as of 15
Q1/2011= 100

December 2021, but the decrement narrowed

80% 95
from 26% QoQ in Q3/2021 to 0.3% QoQ in
75% 90 Q4/2021. Nevertheless, the citywide average
transaction price increased 6.9% QoQ to
70% 85
RMB 40,839 per sq m mainly due to the
65% 80 completed transactions of mid- to high-end
Q1
Q2

Q4
Q3

Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4

projects in urban areas.

2017 2018 2019 2020 2021

Source Savills Research LEASING MARKET

No new supply entered the market in
Q4/2021 and the total stock of the serviced
apartments property market remained
GRAPH 3: Second-Hand High-End And Mid-High
Residential Price Indices, Q1/2017 to Q4/2021 at 3,530 units. International arrivals
High Mid-high Overall
continued to hover at a lower level relative
360 to its pre-pandemic equivalent as strict
340
border control policies remained in place
for two years. Some large-scale MNCs and
320
leading domestic companies which were
300 traditionally active in outsourcing leasing
May 2010 = 100

demand for serviced apartments showed

280
a cautious attitude toward personnel
260 relocation, reducing housing benefits across
240 the board. This was reflected in an increase
in the average vacancy rate and a decrease
220
in average rent. In Q4/2021, the citywide
200 vacancy rate of the market increased by 0.3
Q2

Q4

Q2
Q3
Q4
Q1

Q1

Q1

Q4
Q3

Q2
Q3
Q4
Q1
Q2
Q3

Q1
Q2
Q3
Q4

ppts QoQ to 24.6% and the citywide average

2017 2018 2019 2020 2021

Source Savills Research

savills.com.cn/research 2