Shenzhen came within a whisker in April of entering a bull market in residential real estate, as transactions in the secondary market soared 28.4% YoY and 66% MoM, the highest since October 2016.
The average price of units was around RMB52,000 per square meter, up 0.9%. There were 7,570 transactions, just short of the 8,000 mark set by the industry as a benchmark for a single-month bull market.
The market has been gradually heating up again since the beginning of this year, after two years of cooling thanks to government restrictions. Sales were spurred by lower mortgage rates, optimism over the launch of the Greater Bay Area masterplan in February, and the soon-to-be launched personal credit evaluation system, local analysts said.
Currently, banks in Shenzhen offer 5% as a base rate for first-time property buyers, and 10% for the second. Funding channels have been relatively relaxed since the beginning of the year, after two years’ deleveraging campaign.
May has not seen the tempo maintained, but it is still up over May 2018, according to Centaline, a local agency. All eyes are now on the government to see how it responds, it said.
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