The housing markets of several major Chinese cities, including Shenzhen and Hangzhou, are undergoing a notable recovery, boosted by central and local government policies.
A new residential property with 214 apartments in Shenzhen's Longgang district sold out in just two hours, becoming the city's third development since September to be bought up completely in a single day.
The project's popularity was partly due to its average transaction price of about CNY44,000 (USD 6,075) per square meter, after discounts offered by the developer. That was lower than last month's average asking price of CNY52,000 and the actual transaction price of CNY45,000 for second-hand homes in the surrounding areas.
Another project in Shenzhen's Nangang district was also a hot seller last week, with 198 of the 206 apartments gone on its Nov. 22 debut.
Shenzhen’s housing presales totalled 5,941 and contract signings reached 5,459 this month as of Nov. 22, according to real estate agency Leyoujia. Both figures have already exceeded the local market’s monthly threshold of 5,000 transactions.
Sales of pre-owned apartment in Shenzhen also picked up this month, prompting price increases. A 100-sqm apartment in a residential area of Nanshan district, where many high-tech firms are based, sold for CNY8.3 million (USD1.1 million) at the end of last month and similar units in the same area fetched CNY8.8 million this month.
Another city experiencing a noteworthy revival in its property market is Hangzhou in eastern Zhejiang province. Increasingly optimistic sentiment has boosted home prices there, Shangguan Jian, local branch head of Beike Research Institute.
Premium developments downtown are selling faster, with the decline in prices slowing and even reversing, Jian added. Some 6,540 used apartments were sold in Hangzhou this month as of Nov. 21, with realtors and industry insiders expecting the figure to exceed 10,000 this month if the trend continues.
The market for land in Hangzhou is also picking up. On Nov. 20, major local builder Hangzhou Binjiang Real Estate Group secured the rights to develop a plot with a winning bid of CNY48,186 per sqm, the second-highest amount ever in the city. On the same day, the land use rights for another plot in Hangzhou sold for a 65 percent premium over the starting price.
