Chinese cities near Shenzhen see property markets boom
Analysts say rapid price increases in four towns are the work of buyers from Shenzhen, which has put in place policies to cool its real estate sector
(From Caixin Online)
By staff reporter Wang Jing
Home prices in four cities close to Shenzhen have surged just as the southern city’s housing market sees its first signs of cooling after a long period of feverish growth.
Huizhou, Dongguang, Zhuhai and Zhongshan were among the top 10 cities nationwide in which home prices grew the fastest in April, according to the China Index Academy, a real estate information provider.
Analysts say the increase was driven largely by homebuyers from Shenzhen, including people who purchase properties for investment and those who were priced out of the city. The average price of new homes in Shenzhen rose by more than 37 percent last year – more than anywhere else in the country – to a record of nearly 32,900 yuan per square meter, the city government says.
Shenzhen’s government moved to rein in prices on March 25 by narrowing the pool of eligible buyers and raised requirements for down payments.
In April, the number of second-hand homes sold in the city fell by 56 percent from the previous month, according to data from Centaline Property, a real estate services provider.
More importantly, the second-hand homes were sold for an average of about 54,800 yuan per square meter, down 2.39 percent compared with March, the first such decline in 18 months. Read more