UP, up, up. Home prices rose for the eighth consecutive month in Shenzhen, with a more than 5 percent price increase in April when compared with the beginning of the year.
New homes were sold for 26,330 yuan (US$4,247) per square meter on average in Shenzhen last month, an increase of 5.5 percent compared with the beginning of this year, according to the city’s real estate research center.
Some residential properties even saw much higher price growth, according to a report in yesterday’s Shenzhen Economic Daily.
A residential estate on Gongyuan Road in Bao’an District sold for 33,000 yuan per square meter at the beginning of this year when the first section of the complex went on sale.
The average price of the second section jumped to between 41,000 yuan and 46,000 yuan per square meter last month.
Home prices in Bao’an District, which is adjacent to Qianhai, part of the just-launched Guangdong Free Trade Zone, rose the most among all districts in the city because its location and relatively low prices made it popular among homebuyers.
Director of the research center, Wang Feng, attributed the continuing home price hikes to a short supply.
“Home inventory is not enough in Shenzhen and the saleable ones can only meet demands for about nine months. There are no available lots (for building new homes),” said Wang.
Wang added that the current restriction on home purchases in Shenzhen will stay this year.
Residents with a Shenzhen hukou are only allowed to buy two homes at most.
Apart from the short supply, according to Wang, the easing of the tax rule on real estate transactions and a loose monetary policy are also behind the increase in home prices and transactions.