One out of every 10 Hongkongers has property on the mainland, and more are joining the club every year, a survey suggests.

 

The research, conducted by the department of finance at the Chinese University of Hong Kong and covering 2,000 local residents, also found that 45 percent of respondents would consider buying homes on the mainland.

 

That echoes a prediction from Hong Kong Government's planning department, which suggested that over 160,000 Hong Kong residents will move to the mainland in the next 10 years.

 

"An increasing number of Hongkongers are showing a greater interest in buying on the mainland," said Liu Ming, an associate professor with the department of finance of the Chinese University of Hong Kong.

 

He attributed the trend to the implementation of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the mainland and Hong Kong's recovering economy.

 

"With the CEPA in place, economic and personnel exchanges between the two areas are on the rise," he said. "That has led to Hongkongers wanting to buy homes on the mainland."

 

Increases in people's incomes, bolstered by the recovering economy, was another reason propelling more of them to invest on the mainland.

 

Hong Kong's gross domestic product grew by 7.3 percent in 2005, showing the city has stepped out of the economic downturn that began in 2003.

 

45 percent of those surveyed said they would buy properties on the mainland, if their incomes rise further.

 

As for locations, most Hongkongers want to buy in the Pearl River Delta, with Zhongshan, in South China's Guangdong Province, topping the list.

 

30 percent of respondents said they were lured by the city's tranquil and placid surroundings. The next most popular destination is Shenzhen (cited by 28 percent of respondents) and Dongguan (19 percent).

 

Prices in Zhongshan are also attracting interest, averaging 2,911 yuan (US$364) per square meter, compared to Hong Kong's 35,000 yuan (US$4,475).

 

The mainland's open and spacious living environment was cited by nearly 45 percent of those surveyed as a reason to buy; 18 percent favor the more affordable cost of living; 13 percent said they would buy for investment; and a small portion do so for family reasons, such as having spouses on the mainland.

 

Buying as an investment, as well as to live there, is also a major reason behind the home buying spree on the mainland, a veteran property agent said.

 

Gary Lee, assistant general manager of Hong Kong's leading property agency Centaline Property, told China Daily that people's reasons have changed over the past 10 years.

 

"Before, they went for cheaper and bigger houses," Lee said. "Now more and more want to reap the benefits from the mainland's booming property market."

 

(China Daily March 14, 2006)