Shenzhen has seen an uptick in home viewings after becoming the last of China’s four first-tier cities to ease housing restrictions in non-core areas, Yicai Global reports. One analyst predicted that sales in certain areas would jump by as much as 50 percent in September, compared with the month prior.
Local realtors said the number of viewers at most of Shenzhen’s housing projects were up 10 percent or more since 6 September, when new rules allowing residents to purchase an unlimited number of homes outside Futian, Nanshan and the Xinan sub-district of Bao’an kicked in. Non-residents can now buy up to two homes in eligible districts.
“Customers who were on the sidelines took the initiative to come and view houses over the weekend,” a sales manager in Guangming district said. Some of them reportedly signed purchase agreements the same day.
The relaxation comes ahead of the traditional sales peak in September and October, with experts predicting a strong rebound. New home sales in Shenzhen could see a month-on-month jump of up to 50 percent this month, according to Xiao Xiaoping, dean of the Shenzhen Shell Research Institute.
[See more: Hong Kong’s property market is showing signs of recovery]
Li Yujia, deputy director of the Guangdong Provincial Housing Policy Research Centre, agreed that sales would likely pick up in the wake of the new measures, but noted that Shenzhen’s real estate market remained in a serious downturn with used home prices having been in decline for over four years.
Shenzhen follows Guangzhou, Beijing and Shanghai in loosening property controls. More cities are expected to follow suit as policymakers seek to revive the nation’s real estate market while maintaining curbs in core urban districts to deter speculation.
Earlier this month, JPMorgan chief China economist Haibin Zhu cautioned that mainland house prices were unlikely to stabilise until 2026 at the earliest – despite the suite of historic stimulus measures being rolled out this year.
