【Greater Bay Area Residential Properties Guide – Chapter 1】Hacks for Buying Property in 9 Mainland Cities & Macau

Checklist and ways to prepare essential documents for property ownership

First-hand property:

• Required documents:  When purchasing property in GBA cities and Macau, you must submit identification documents, such as a Hong Kong or Macao Special Administrative Region Permanent Resident Identity Card and the Mainland Travel Permit for Hong Kong and Macao Residents, etc.

• Additional document requirements: Certain cities, such as Dongguan, require an additional document, known as the “東莞市購房人家庭商品住房情況查詢記錄" which is an official record used in Dongguan, China, to verify a household’s property ownership status.

• Purchase method: The buyer can directly purchase from the developer without having to go through a real estate agent.

Second-hand property:

• Required documents: Similar to those for first-hand properties, Hong Kong and Macau residents looking to buy second-hand properties are required to submit identification documents.

• Purchase method: Buyers can either directly contact the landlord or purchase through a real estate agent. Since most agents have access to more resources and market information than individual buyers and tenants, the process of buying or renting first-hand and second-hand properties through agent tends to be more efficient. Therefore, buyers may consider consulting agents or have them handle the transaction process.

Purchase restriction policy comparison

Cities with no purchase restrictions:

• Zhuhai, Foshan, and Huizhou do not implement purchase restrictions on Hong Kong and Macau residents and have no limit on the number of properties purchased. However, certain cities may require buyers to submit a written declaration stating that they are the sole user and tenant of the property. Macau also has no purchase restriction policies, allowing people of any nationality to purchase property there.

Cities with purchase restrictions:

Purchase restriction policies apply to non-local residents in certain cities like Shenzhen, Dongguan, etc. For example:

• Shenzhen:
  • Some districts require non-local residents to provide proof of personal income tax and social insurance payments within the past year;
  • All non-local residents can only purchase a maximum of one property, but families with two or more underage children can purchase more than one property.

• Dongguan:
  • Buyers are required to provide a written declaration that the property is for personal use and residency;
  • Those who are 18 years or older, have received their residence permit in Dongguan, and do not own any property under their name, are eligible to purchase one newly-constructed property in Dongguan.

Down payment and mortgage terms

Down payment ratio:

• Dongguan: The first property’s down payment is 20%; the second property’s down payment is 30%.
• Foshan: There is no loan restriction policy, down payment ratio is relatively flexible.
• Zhuhai: The down payment on your first property can be as low as 15%.

Mortgage interest rates:

• The mortgage interest rates in Mainland cities are based on the Loan Prime Rate (LPR,the market rate for mortgages). Some cities, like Zhuhai, support LPR-60BP (Basic Point, i.e. 0.01%). The current interest rate is approximately 3%.

Mortgage period:

• The mortgage period in most Mainland cities usually does not exceed 30 years. Certain cities, like Macau, have mortgage periods that go up to 30 to 35 years, with the loan duration varying based on the age of the property and the mortgagor.
• Loan restrictions and mortgage application requirements will adapt to the market demand. Consumers are advised to pay close attention to the latest policies in their area, and consult the respective banks for the details of their mortgages. To learn more, head to “GBA Smart Guide (Residential Properties)” to browse each city’s page and contact local officials for details.

Property insurance must-knows

Property insurance:

• 9 Mainland cities: Landlords are not required to purchase property insurance.
• Macau: Landlords must purchase fire insurance for mortgaged units.

Suggestions for extra protection:

• Although the Mainland Government currently does not require landlords to buy property insurance, in order to ensure safety in the case of an accident or adversity, it is recommended that landlords purchase property insurance.

Disclaimer

This article has been translated using artificial intelligence (AI) technology. While efforts have been made to ensure the accuracy of the translation, it may not be perfect and could contain errors or inaccuracies. The original article at GBA Smart Guide (Residential Properties) should be referred to for the most accurate information. The Consumer Council does not assume any responsibility for any error, omission, or ambiguity in the translated content. If you have any question or concern about the translation, please refer to the original article or consult a professional translator.