Luxury Homes in Hangzhou Sold Out Amid Wealth Verification Checks

In Hangzhou, luxury homes in the top tier have experienced a surge in sales over the past month, driven by relaxed policies that increased the availability of properties. Some developers now require potential buyers to provide proof of assets before they can view the homes, according to sales agents.

Since mid-April, six newly launched high-end residential projects in the city have attracted strong interest from wealthy buyers eager for improved living spaces. Due to the high number of visitors, developers have established minimum asset requirements ranging from a few million yuan to as much as 80 million yuan (around $11.8 million).

The sales center for Wangtianji, a luxury development along the Qiantang River, became crowded after its show units opened early last week, a local industry insider reported. In response, the developer increased the asset requirements for viewing different unit types, raising the minimum for larger homes to CNY80 million from CNY30 million.

This buoyant demand indicates that Hangzhou’s ultra-luxury housing market is rebounding after earlier restrictions on land and price caps limited supply. Developers resumed constructing premium projects following the city’s removal of these restrictions in 2024, with all six newly introduced luxury developments beginning construction after the policy change.

Luxury Property Market Rebounds Following Policy Changes

While specifics on sale prices for Wangtianji have not been officially disclosed, insiders estimate that the prices for larger units are near CNY200,000 (about $29,500) per square meter. This suggests some homes could be valued at over CNY100 million ($14.7 million) each.

Similarly, the other five luxury projects have set asset thresholds ranging from CNY6 million to CNY38 million for pre-sale viewings.

Many of these projects sold out on the day they launched. For example, all 38 townhouses available in the initial phase sold within the first day, despite prices ranging from CNY60 million to CNY100 million per unit.

A local real estate expert informed that restrictions on land and home prices during China’s previous market boom limited the supply of high-end luxury properties and suppressed demand from wealthy buyers seeking superior living conditions.

A representative of one luxury development noted that most of the buyers are entrepreneurs from Zhejiang province, working in industries such as finance, semiconductors, artificial intelligence, and advanced materials. The majority are between 35 and 45 years old.

Zhejiang boasts a robust private sector and a rapidly expanding digital economy. The capital city, Hangzhou, hosts several prominent tech firms, including Alibaba Group, Unitree Robotics, and DeepSeek.