Transactions for new homes in Shenzhen have continued to see a downturn despite efforts by housing developers to stimulate sales such as lowering prices, the Southern Metropolis Daily reported yesterday.
In the past month, which has been regarded as a booming golden period for housing transactions, three large housing projects were put into the market, offering a total of 1,500 new homes. However, despite the various tactics employed by the developers, these projects failed to beef up sales.
The Country Garden put 348 new apartments in a housing project in Pingshan District onto the market, with prices ranging from 1.71 million to 3.83 million yuan (US$247,110 to US$553,468) per apartment.
The housing project is the first in the city to be restricted by the government with a ceiling price. When the developer received the land from the city government in 2016, it was obliged to control the sale price to 90 percent of the registered prices of similar projects by other developers. The ceiling was set at 30,600 yuan per square meter.
The floor price of the land parcel in Pingshan District is estimated at 22,400 yuan per square meter, according to the report.
As the average price of a pre-owned apartment in Pingshan now stands at 31,000 yuan per square meter, a home at the Country Garden Pingshan project is cheaper than those pre-owned apartments.
In Futian District, another real estate developer introduced 345 apartments in an up-market project that has been delayed for three years. The prices range between 80,000 yuan and 90,000 yuan per square meter. The developer is offering a package of discount promotions.
The developer of a residential complex in Nanshan District put 836 apartments onto the market, with an average price of 82,000 yuan per square meter. However, only 400 people attended the sale inauguration ceremony and 300 apartments were sold.
“Compared to sales in October in the previous two years, the transactions were much lower,” a sales manager of a property developer was quoted by the Daily as saying.
Experts said the housing market has become more rational as speculation has been squeezed out of the market under tight regulatory control.