In June, the average price of Shenzhen's primary residential houses leaps to first place. Image: m.fang
The primary residential housing price in Shenzhen has set a new record last month with an average purchase price higher than that in other first-tier cities.
According to statistics released by the Urban Planning, Land & Resources Commission of Shenzhen Municipality, in June, the average price of primary residential houses is 61,756 yuan per square meter, an increase of 10.6% compared to May and 101% year on year. Meanwhile, the average price in Beijing was 36,259 yuan/㎡and in Shanghai 35,815 yuan/㎡ based on statistics from Midland Realty Research Center.
In the first half of this year, high end real estate such as The Peninsula phase 3 and The Icon entered the market significantly driving up average prices. Furthermore, the restricted availability of land in Shenzhen compared to Beijing and Shanghai added pressure.
Shenzhen real estate purchases are almost exclusively in the white collar sector whilst a small number of non-local wealthy buyers also exist despite tight government policy against outside purchase, according to He Qianru, director of Midland Realty Research Center. Ms.He also suggested that through the end of the third quarter, a potential glut in primary residences on the market might potentially slow further increases.