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Shenzhen second-hand home sales tumble

By Wu Xiaobo (chinadaily.com.cn) Updated: 2016-04-27 13:44

Shenzhen second-hand home sales tumble

Residential buildings in Bao'an District, Shenzhen, April 5, 2016. [Photo/IC]

Shenzhen property market cooled down following the tightening measures on home purchases adopted a month ago.

Second-hand home transaction in Shenzhen came to 6,793 units during the period from April 1 to 24, down 64 percent year on year, according to data from the research center of property agency Centaline Group, quoted by South Metropolitan Daily.

Meanwhile, the average price for resale homes last week (April 17-23) stood at 51,690 yuan ($7,965) per square meter, sliding 8 percent from March, data indicated.

In Huangbeiling, Luohu district, the average price of second-hand homes declined nearly 10 percent to 50,000 yuan per square meter, according to Xu Xiangxi, a local store manager of property agency Homelink Real Estate.

In a bid to rein in the runaway property market, Shenzhen adopted a series of new curbs –described as among the strictest on record - on March 25.

Under the policies, second home buyers in Shenzhen, who have paid off loans for their first property or those who have applied for mortgage loans within two years, are required to fork out a down payment of at least 40 percent, compared with the previous 30 percent.

Buyers without Shenzhen household registration are allowed to buy only one property and must have paid tax or social security premiums in the city for at least three consecutive years instead of one year in the past.

Receded heat on the second-hand housing market has prompted property agencies to shift their focus to the sale of new homes, said Yu Zhigui, a store manager with real estate agency qfang.com

"Previously when the market was upbeat, developers were unwilling to work with property agencies. However, recently a majority of them have opted for cooperation with the agencies," he added.

Data from Centaline also showed some 5,548 units of new homes were transacted from February 25 to March 24. The volume fell nearly a half to 2,733 units for the period from March 25 to April 25.

 

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