Housing price declines for first time in 2016
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ATAHK reads from Shenzhen Daily that The upward trend of Shenzhen property prices seems to be coming to an end as April housing prices recorded the first drop this year.
The latest data by the city’s land and resources commission showed that by May 1, the average price of new homes fell by 113 yuan (US$18) to reach 49,876 yuan per square meter in April compared with March and transactions plunged by 47.5 percent to 2,340 apartments in the past month.
Some experts say the abrupt change might signal the end of the upward streak of property values in the city.
According to Xu Zhizheng, a veteran housing analyst, the property market is considered slow if the monthly transaction volume of new homes falls below 3,000 and is hot when the figure surpasses 6,000 apartments.
Longgang District, whose housing transactions made up 45.5 percent of the city’s total last month, was the only contributor to the fall, according to the data. It was the only district to see housing prices fall by 4.5 percent in April while housing prices in the other districts went up with a month-on-month growth rate ranging from 3.2 percent to 14.2 percent.
Statistics from Centaline Property showed that the average price of pre-owned housing declined by 2.39 percent to 54,807 yuan per square meter last month compared with March. It was the first time that the city’s pre-owned housing prices saw a decrease after soaring for 18 months from around 30,760 yuan per square meter in October 2014.
Official data showed that 7,842 pre-owned apartments were traded last month, falling by 58.1 percent compared with March. Data from Homelink Real Estate’s research center showed that the actual trading volume of pre-owned housing was around 5,000 apartments last month, marking the cooling down of housing transactions.
Data from the China Index Academy showed that in April, four first-tier cities — Beijing, Shanghai, Guangzhou and Shenzhen — were unseated in the top 10 cities with fastest growth of housing prices in China.
Housing prices soared wildly last year, raising rent past affordable levels for some residents.
The decrease in housing prices is inevitable, said Lin Jiaru, a general manager of a realty agency website qfang.com.
Deng Zhiwang, Shenzhen Polytechnic’s property research center’s head, said declining trading volume reflected that homebuyers had held off their home purchasing plans and waited for the housing prices to slump. But property developers refused to reduce the price, leading to the sharp drop of trading volume.
Song Ding with the China Development Institute said the city’s Yu Jiaxiong with Centaline Property said the market is entering an adjustment phase which could last to the end of this year. But he said the housing price won’t go through a big slump as the housing market demand is large, and many homeowners are still willing to buy apartments if property developers cut the price a little bit.new property policies will cool down the housing market.
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