What is the reason for the skyrocketing housing prices in Dongguan?

1. Shenzhen’s purchase restriction upgrades, demand spillover effects

When looking into the reasons for the skyrocketing housing prices in Dongguan, the first thing that comes to mind is the geographical advantage, with Guangzhou to the north and Shenzhen to the south. With the property market in first-tier cities going crazy and Shenzhen’s purchase restrictions escalating, Dongguan has become the best choice to receive overflow customers from the Guangzhou-Shenzhen property market due to the crowding-out effect. Especially in the Linshen area, nearly 80% of home buyers are from Shenzhen, and the average price reaches 20,000 per square meter.

Data from Hefuhuihuang Dongguan Market Research Department show that 8 of the top 10 areas with the highest housing prices in the first quarter were Linshen area, and 70% of sales came from Linshen area; Humen, which is close to Nansha area, even took the top spot. won the championship in terms of transaction area.

2. The imbalance between supply and demand in the property market has contributed to rising housing prices

Data from Hefuhuihuang Dongguan Market Research Department show that in the first quarter of this year, the newly supplied area of ??first-hand residential buildings in Dongguan was approximately 178 square meters.

30,000 square meters, a year-on-year increase of 4%, and the online signing area reached 2.895 million square meters, a year-on-year increase of 124%. Both supply and demand hit the highest level in the same period in history, and the supply-demand ratio was only 0.6:1. , is in serious short supply.

3. With perfect rail transportation, the value depression is highlighted

In the hot market environment of the Guangzhou-Shenzhen property market, Dongguan’s value depression effect is highlighted. Coupled with the convenient transportation between Dongguan and Guangzhou and Shenzhen, more and more homebuyers are choosing to escape Guangzhou and Shenzhen, where housing prices are high and purchase restrictions are imposed.

The Guangzhou-Shenzhen Harmony train connects Dongguan, Changping, Zhangmutou and other areas, facilitating connections between the three places and creating a one-hour economic circle. Dongguan's rail construction plan has 7 subway lines, which will not only facilitate travel between different regions, but also strengthen connections with surrounding cities.

4. A large migrant population and strong demand for home purchases

Thanks to the rapid growth of the manufacturing industry, Dongguan’s migrant population has been leading the country for many years. The cities with the largest domestic immigrant population and the fastest growing immigrant population in China are Beijing, Dongguan, Guangzhou and Shanghai. Dongguan receives the largest domestic immigrant population after Beijing. The phenomenon of serious inversion of local and non-local population in Dongguan has existed for a long time.