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Catering and hotels to follow rapid house price rise
China.org.cn,  
2015/05/22
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As one of the three major free trade areas in Guangdong, the Hengqin Area of Zhuhai, China (Guangdong) Pilot Free Trade Zone (FTZ) includes all the 28 square kilometers of land for development in Hengqin New Area. With improved business services, port services, science and technology and the tourism and an upgraded leisure industry, Hengqin has become a good investment choice.

House prices in Hengqin have risen rapidly in recent years. In 2009, the price was only 8,000 yuan per square meter while it rocketed to 40,000 yuan this year. The growth in house prices is the result of the superimposed effect of the innovation policies and the overall planning in Hengqin. As houses in Hengqin are half of prices in Macao but are more comfortable and spacious, nearly 80 percent of the houses have been bought by Macao residents. People in mainland China have also bought houses in Hengqin. Some real estate experts predict that Hengqin's house prices ‘have not reached a peak, and may rise to 90,000 yuan per square meter in four years.'

Since Hengqin became a demonstration area of Guangdong-Hong Kong-Macao cooperation in 2009, many financial, commercial and high-tech enterprises have been introduced. Therefore, the commercial real estate has been greatly improved, such as the Hengqin Headquarters Building, Zhuhai Shizimen Central Business District and Zhuhai Chimelong International Ocean Reserve.

The catering industry in Hengqin is also expanding fast. The delicacy town of Hengqin is filled with seafood and snacks, which have strong island features. Although one third of the shops are still to be rented, the town, which covers several streets, is beginning to take shape.

Like the house prices in Hengqin, the rent of the shops is also on the rise. A monthly rent of 300 yuan per square meter for a shop is very common. The rent at crossroads can reach 500 yuan. “My porridge shop is 10 square meters in size. The monthly rent is 3,500 yuan. My shop has been open for nearly half a year. Now I can't make much money. But in the future, I think business will get better and better,” said a shop owner from Maoming, Guangdong.

Hotels have also prospered. Near Hengqin Chimelong Ocean Kingdom house several high-end hotels, including the Chimelong Hengqin Bay Hotel, Chimelong Penguin Hotel and Chimelong Circus Hotel, where rooms cost over 600 yuan a night. In addition, a large number of hotels are concentrated in the town of Hengqin, with daily room prices ranging from 200 to 300 yuan. Room prices can rise over 100 yuan at weekends or during holidays. Economical chain hotels and some featured inns will be good choices for investors. With the increase of tourists, they will offer big returns in the future.