The property market in Shenzhen has experienced its highest level of sales and enquiries in six years, following the relaxation of purchasing controls in key districts towards the end of April.
Figures from local estate agent Leyoujia, reported by Yicai Global, reveal a significant uplift during the recent five-day Labour Day holiday, which concluded on 5 May. Sales of newly built homes saw a year-on-year spike of 48 per cent, while the resale market performed even better, with transactions soaring by 62 per cent. Across the board, the total number of people viewing properties increased by more than 25 per cent.
The new regulations, implemented on 29 April, eased several key restrictions. Residents with local household registration may now purchase three properties in core areas, an increase from the previous limit of two.
For non-locally registered residents who have been contributing to social insurance or income tax for over a year, the maximum number of properties they can buy has risen from one to two. Additionally, individuals holding a valid local residence permit are now permitted to acquire a single property.
The policy changes also provided a substantial boost to the maximum limits for provident fund mortgages, Yicai Global says. The limit for an individual loan climbed from 1.3 million to 1.9 million yuan (US$190,860 to US$278,950), and the maximum for a household loan increased from 2.3 million to 3.5 million yuan.
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Estate agents reported that appointments for viewings were booked immediately upon the policy’s introduction. The increased purchasing allowance prompted some current homeowners seeking to upgrade their properties to reverse their strategy, opting to purchase a new home before selling their existing one. Furthermore, the allowance for holders of a Shenzhen residence permit to buy a home attracted buyers from other parts of China.
Anecdotal evidence from residential projects reinforces the data. Enquiries at Excellence Manyue, situated in a central area, rose by 30 per cent on the second day after the change.
The luxury development Shenzhen Bay Yunxi reported that sales tripled over the holiday compared to the average weekly volume in April, accompanied by a 27 per cent rise in visitors. A salesperson at the site noted a large influx of affluent buyers from places like Taiwan, Beijing, and Guangzhou, who were keen to benefit from the new rules.
The core urban districts also saw dramatic increases in activity. In Nanshan, new home sales more than doubled, and second-hand sales jumped 85 per cent. Futian experienced a doubling of new sales and a 77 per cent surge in resales. Bao’an saw a 45 per cent rise in new sales and a 150 per cent jump in resales. Several buyers told Yicai Global that “the time is right” to purchase.
Looking ahead, Li Yujia, chief researcher at the Guangdong Provincial Academy of Housing Policy Research, projects that new home sales in May will likely equal or exceed the volume from the same month last year, with a projected rise in second-hand transactions.
