New Housing Prices Fall 23 Percent in Shenzhen

Kelly Chan   |   August 31, 2021

Shenzhen Daily, Li Hao reported that “THE average price of new apartments in Shenzhen was about 17,876 yuan (US$2,837) per square meter last week (Aug. 8 to 14), a fall of more than 23 percent compared with the previous week.
    A total of 357 new apartments were sold last week, a more than 40 percent decline, according to the city’s urban planning and land resources commission figures.
    The trade volume of new apartments last week was the lowest since mid-April, yesterday’s Daily Sunshine reported.
    The fall in trade volume was evident in all districts except Luohu.
    Besides, the pre-owned housing market remained sluggish with only 289 pre-owned apartments sold last week, a more than 50 percent fall over the previous week, the paper said.
    The average price of pre-owned apartments was 18,472 yuan per square meter, an 8 percent fall.
    Property owners remained on the sidelines during the Universiade holidays which led to a smaller new supply of pre-owned homes last week, according to a Shenzhen Centaline property analysis which found pessimism was still ruling the market.
    Property prices would continue to fall as apartment supply increased during the rest of this year, the paper said.
    At least 30 properties would hit the market in the fourth quarter, which would mean fierce competition, according to the Shenzhen branch of the Centaline Group.
    In addition, big developers were still under great pressure to meet annual sales targets while smaller companies would be under strain for cash.
    With the extension of strict restrictions on housing purchases, developers have learned that the number of qualified buyers would decrease further, Shenzhen Economic Daily reported.
    “The drop in housing prices will spread throughout the whole city and the availability of pre-owned housing would fall by about 15 percent for the rest of the year,” said Li Yaozhi, Shenzhen manager of Centaline.”