MORE than 100 potential homebuyers lined up outside the sales center of a housing estate in Longhua New Area on Friday night, hoping to snap up one of the apartments to go on sale the next day. The average selling price of the new apartments has increased by 5,000 yuan (US$904.5) per square meter since December, when the properties first entered the market.
The Central Government recently eased the rules to buy homes, spurring a surge in demand that has been matched with an increase in prices.
Last month, the People’s Bank of China, the Ministry of Housing and Urban-Rural Development and the China Banking Regulatory Commission enacted a policy that aims to stimulate the property market by lowering required down payments.
The required down payments to buy a second home in China have been lowered to 40 percent of the total home price. Those who use a provident fund for a first home loan only need to make a down payment of 20 percent of the total value.
The Ministry of Finance and State Administration of Taxation also released a policy that allows property owners who have owned a residential property for more than two years to sell the property without paying sales tax.
Shenzhen’s home prices are increasing the fastest out of China’s 70 major cities.
The policies directly contributed to an increase of investment rates by 7.6 percent for the week of March 30, according to data released by zlhome.com and Home Link, two property agent companies. Longhua New Area and Longgang District are the two most popular areas for new purchases.
Many property developers have put new homes on the market to cash in on the demand. A housing estate in Guangming New Area sold 330 apartments in a single afternoon.
Two new residential estates in Longhua New Area and Longgang District also saw big sales numbers Saturday, with 152 apartments sold by noon for an average price of 37,000 yuan per square meter, an increase of 16 percent in four months.
Higher real estate prices are also pushing rents up in Nanshan District and Longhua New Area.