Residential property sales in Shenzhen appear to be accelerating in the wake of market restrictions being lifted, China Daily reports, noting that two residential projects sold out within a day of going on the market in the past fortnight.
The first project saw more than 740 hopefuls compete for 332 new apartments in Longhua district, and the second project comprised 192 apartments in Guangming district, which were all snapped up within 90 minutes on Saturday.
The city’s government further relaxed its home buying restrictions on 29 September. Measures included reducing down-payment ratios for first and second-home buyers, mortgage rate cuts and getting rid of the three-year sales ban on residential property. In addition, people without Chinese household registrations are now allowed to buy properties in parts of Shenzhen.
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Li Yujia, a researcher at Guangdong’s Housing Policy Research Center, said that the sales could have “a major effect in boosting market confidence and spurring market demand.” However, he also noted that the performance was “more of a result of price reductions by developers” than a symptom of economic recovery.
The apartments were split between luxury and ordinary residences, Li said. “On the one hand, the wealthy group of people who have been less affected by the economic adjustment have strong demand for buying cost-effective luxury homes to improve their living conditions. On the other, a large number of migrants in Shenzhen who were deterred by high housing prices now find it easier to afford homes, given a drop in home prices and relaxed policies,” he told China Daily.
Nevertheless, similar growth is being seen in the pre-owned home market. The Beike Research Institute said it believed the number of sales for older homes in Shenzhen had more than tripled during the three weeks after the announcement of market adjustments, when compared with the three weeks prior.
