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Shenzhen's Home Sales Surge Despite Developer Stocks' Turbulence

Squarefoot Editor  2024-04-03  #Property Hit News

Shenzhen's secondary home market witnessed a notable price increase of 1.89 percent in March compared to the previous month, as reported by Zhuge Data Research Center. This uplift marks the first time in three years that transactions have surpassed the 5,000 threshold, with a 5.1 percent rise to 5,196 transactions. Shenzhen stands out as the sole first-tier city to experience a price increase last month. Analysts attribute this growth to eased purchase restrictions and reductions in mortgage rates, as detailed by the Shenzhen Real Estate Intermediary Association.

Amidst the real estate market's vibrancy, China Vanke's shares faced challenges, dropping to a low of HK$4.71 each before closing marginally higher at HK$4.72. This dip followed downgrades by investment banks, including JP Morgan, casting a shadow on the developer's outlook.

Adding to the sector's mixed fortunes, Country Garden announced a trading halt due to its inability to release annual results by the April deadline. The developer also reported a steep 82.8 percent drop in its contracted sales for March, amounting to 4.3 billion yuan (HK$4.74 billion).

On the brighter side, Sunac China (1918) fulfilled its obligations by paying the full interest on its new bonds by the due date of March 30, with total accumulated interest reaching US$191.79 million (HK$1.50 billion).

In related news, Wanda Group's subsidiary, Newland Commercial Management, secured nearly 60 billion yuan (HK$64.91 billion) from five investors. This significant capital infusion resulted in a consortium led by PAG acquiring a 60 percent stake in the company, promising a reshaped future for the commercial management firm. 

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