Normally regarded as a wind vane for the nation’s real estate market, Shenzhen in recent months after the epidemic which has become stabilised, not only has increased property price, but total transaction has also picked up. Mainly dragged down by the slowdown in the progress of construction projects, market demand returned to the second-hand housing market. Alone in June, the turnover of second-hand housing in Shenzhen broke 10,000 units, a new high in four years. Market demand was released in the second quarter of the year, and the overall property market has performed well. According to the szhome.com, second-hand housing in the first half of 2020 had a total transaction volume of 44,000 units, an increase of 41.2% year-on-year; the area transacted exceeded 370 square meters, an increase of 45.8% year-on-year. The transactions were mainly from districts like Longgang, Baoan and Futian areas. Among them, the number of transactions in Longgang and Baoan districts surged by 53.0% and 55.9% year-on-year to 11,190 units and 10,675 units, respectively.
During the first half of 2020, new homes supply was subject to the epidemic situation. Couple with the continued price limit of the new home price, the market was relatively sluggish. February’s new home transaction plunged to 830 units, and then recovered to have an over 3,000 units of transactions from March to June. A total of 16,727 new homes were sold in the first half of the year, down by 5.4% year-on-year; whilst the total transaction area dropped by 3.6% year-on-year to close to 1.7 million square meters. Longgang District has become the best-selling district, accounting for 34.6% of the total new home transactions and reaching 5,781 units. Buyers have preferred homes with size ranging from 90-144 square meters, accounting for 56.2% of the City’s new home transactions and reaching 9,399 units.
As for the second half of 2020, there could be a number of factors supporting the housing transaction volume and offering price stability in Shenzhen’s housing market, including the continued stability of the epidemic, the recovery of the global economy, as well as the steady and orderly supply of new homes. It is worth mentioning that the current low interest rate environment has further released the purchasing power of the Shenzhen residential market. It is believed that policy risks will remain for the remainder of this year, even though Shenzhen fine-tuned its housing market policy in mid-July. As such, Shenzhen’s home market performance in the third quarter is expected to continue to be a market focus in the coming quarter.