Shenzhen Real Estate Hits Record High
August 17, 2015 - Shenzhen
New home prices in the city grew 7.84 per cent from June to 33,698 yuan per square metre ($ 5,270).
The gain was the strongest among the 10 major cities tracked by the SCMP-Creda index, a collaboration between the SCMP and consultancy China Real Estate Data Academy.
That helped Shenzhen regain the crown after losing it in March last year as it swiftly responded to an industry downturn.
In between, Beijing sat at the top for two consecutive months and then Shanghai for 14.
"The market frenzy moderated in July,"said Chen Sheng, the dean of the academy, as the impact from previous supportive policies waned and a slide in the stock market wiped trillions off family wealth, forcing some buyers of luxury homes to postpone their plans or cancel deals.
Combined sales in the 10 cities fell 9.6 per cent from June after four consecutive months of increases. Beijing was the only first-tier city that saw a gain, up 26 per cent to 1.3 million sq metres.
In Guangzhou, sales dropped 19 per cent month on month to 1.09 million sq metres, while Shanghai saw a 13 per cent decline to 1.3 million sq metres.
Sales in Shenzhen also slipped for the first time since February, down 9 per cent to 813,100 sq metres. Four of the other six cities on the radar suffered a slide in transactions as well.
Banks in Shenzhen, Guangzhou and Shanghai have started to tighten rules recently by raising down payments for mortgages.
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