The Chinese real estate market continues to struggle. In Shenzhen’s Nanshan district, the unit price of a commercial office apartment has plummeted from 75,000 yuan (RMB, the same below) per square meter to 38,000 yuan per square meter, a direct halving.
According to a report by Caixin on September 3, the Yu Jing Feng project in Shenzhen’s Nanshan district has significantly reduced its selling prices, with the prices of housing units dropping by about 50% compared to previous levels.
A property consultant of the Yu Jing Feng project stated, “We offer commercial office apartments with no restrictions on purchases or loans. Currently, the lowest priced unit is at 38,000 yuan per square meter, starting at a total price of around 5.85 million yuan, with a down payment of approximately over 2 million yuan, available in sizes of 157 square meters and 228 square meters.”
According to data from Shenzhen Zhongyuan Research Center, the property rights of Jingji Yu Jing Feng are for 40 years, with the previous average recorded price being around 70,000 yuan per square meter and the lowest recorded price being approximately 60,000 yuan per square meter.
“The Yu Jing Feng project started lowering its selling prices after October 2022. The selling prices were relatively stable before that,” the property consultant mentioned. The price reduction of the project is mainly in sync with the overall changes in the market environment, as the entire local market is undergoing price decreases to increase sales volume, offering greater discounts for quick returns.
An analyst from Shenzhen Zhongyuan Research Center told the media outlet that the supply of commercial office products in Shenzhen far exceeds the demand, and due to corporate funding needs and market factors, price cuts for sales are inevitable. Currently, it is very common to see significant discounts on office products in the Shenzhen market, even in the core areas. Discounts of 50% or more are seen in office products in Nanshan, Futian, and Luohu, with many projects offering even lower discounts.
Data monitored by China Index Research Institute indicates that from January to August this year, a total of 3,885 sets of commercial apartments were traded in Shenzhen, with a transaction volume of 225,000 square meters, showing a decrease of 45.68% compared to the same period last year.
In fact, not only are commercial office apartments struggling, but the transaction volume of new residential properties in Shenzhen has also decreased again.
According to monitoring data from China Index Institute, in August, 2,537 sets of new residential properties were traded in Shenzhen, with a transaction area of 269,500 square meters, representing a 7.23% decrease compared to the previous month.
Sun Hongmei, a senior analyst at the South China Branch of China Index Research Institute, mentioned to the media, “In August, the effects of policies noticeably weakened, and Shenzhen’s new residential property transactions remained weak. The supply of new residential properties is also relatively low, posing continued market adjustment pressures. Currently, residents’ income expectations remain weak, their confidence in the real estate market is low, and a cautious attitude persists. The sustainability of the Shenzhen property market is uncertain, and the industry still believes that further policy relaxation is needed to stabilize the market.”