As the property market hovers at a low level, the prices of some second-hand houses in Shenzhen have recently dropped to the level of 2018, with transaction volumes also hitting a low point in nearly 6 months. Under the continuous downturn of second-hand house prices, the prices of new houses in Shenzhen have also been affected, experiencing a decline.
According to the news from the real estate channel “Every Economy Real Estate” under the “Daily Economic News” on September 4, Shenzhen’s current housing prices have fallen back to the “5-digit” range. Data from Leju.com shows that the average transaction price of second-hand houses in Shenzhen in August was 59,000 yuan per square meter, a decrease of 0.34% compared to the previous month. Owners listed their properties at 67,300 yuan per square meter, a decrease of 100 yuan per square meter compared to July. Since May 2021, housing prices in Shenzhen have been falling continuously for more than three years, with some outlying areas seeing a drop of around 40%, and individual second-hand properties experiencing a significant decrease, with many prices returning to the level of 2018.
According to the data from the Shenzhen Housing and Urban-Rural Development Bureau, in August, the number of second-hand residential property transfers in Shenzhen was 3,804 units, a decrease of 16.8% from the previous month, marking the lowest point in nearly six months.
With the continuous decline in second-hand house prices, new house prices in Shenzhen have also had to be reduced to attract buyers.
Real estate agent Liu Ting revealed to Every Economy Real Estate: “Many new projects in Guangming District are now priced in the range of 30,000 to 40,000 yuan per square meter because second-hand housing prices here have dropped significantly, forcing new projects to lower their prices.”
Previously, the prices in the core area of Phoenix City in Guangming District were generally above 60,000 yuan per square meter, with individual properties fetching up to 80,000 yuan per square meter at their peak, but now second-hand house prices have fallen to around 50,000 yuan per square meter.
As second-hand house prices in Guangming District fall, some projects are struggling to sell the completed units and are forced to reduce prices to clear their inventory. Real estate agent Xu Xianpeng in Guangming District introduced to the media, “Jindi Mingfeng Mansion is now clearing its inventory with special prices, and it has become a ready-to-move-in project. The opening price for Phase 1 was 43,000 yuan per square meter, and now there are some units priced just over 30,000 yuan per square meter.”
In addition, according to a report from Caijing Network on September 3, the unit price of the Yujingfeng project in Nanshan District, Shenzhen has dropped from 75,000 yuan per square meter to 38,000 yuan per square meter, a decrease of about 50% from the previous highest selling price.
According to data from the Shenzhen Central Research Center, the ownership of Jingji Yujingfeng is for 40 years, with the previous recorded average price at around 70,000 yuan per square meter, and the lowest recorded price at around 60,000 yuan per square meter.
According to the latest data from the Shenzhen Central Research Center, 2,537 new residential units were signed online in August, a decrease of 3.0% compared to the previous month.
Sun Hongmei, a senior analyst at the South China branch of the China Index Research Institute, told Caijing Network, “The policy effects in August have significantly weakened, Shenzhen’s new housing transactions are still weak, new housing supply is also relatively low, and the market still faces adjustment pressure. Current residents’ income expectations are still weak, their confidence in the property market is insufficient, and the wait-and-see attitude remains strong. The sustainability of the Shenzhen property market is uncertain, and the industry believes that further policy loosening is needed to further stabilize the market.”
Netizen “Skywalker” believes that property prices in Shenzhen are still too high: “There is still a lot of room for adjustment. According to Shenzhen’s industrial structure and future trends, property prices in very central areas of Shenzhen should be between 60,000 and 80,000, and for outer areas 40,000 to 50,000, with suburbs probably between 20,000 and 40,000 to match Shenzhen’s future, as the future of Shenzhen is unpredictable.”