Shenzhen Real Estate Prices Jump 50 Percent in a Year
In just a span of a year, prices of real estate properties in Shenzhen, China have increased by as much 50 percent, making it the most expensive property market in China after Hong Kong.
This came amid reports of the deteriorating Chinese economy, which slowed down other segments of the local economy in the country. The reported economic slowdown in China affected various sectors, including the real estate market, a recently released report from The Real Deal showed.
The report, which was lifted from an original article from the Wall Street Journal, showed that real estate prices rose in Shenzhen to an uncontrollable level, making it the second least affordable Chinese city to buy a property in.
The skyrocketing of real estate prices in Shenzhen was a bit of a deviation from the national norm as property prices are starting to normalize on a national level. As of the last report, real estate prices in Shenzhen rose by exactly 46 percent, as opposed to the same period of the previous year.
Shenzhen is a Chinese town located in the southern part of the country, just a few kilometers away from Hong Kong, the country's notoriously expensive city for real estate purchases.
The 46 percent increase observed in Shenzhen's real estate prices is in no way comparable to the 16 percent recorded in Shanghai, one of China's most progressive cities. Beijing, the country's financial and government center, registered a relatively conservative 10 percent real estate price hike.
As early as June of last year, there was reported panic buying of real estate in Shenzhen, according to a June report by Forbes. Apparently, it was more practical and profitable to call off sales and pay penalties than going through with actual sales, the report added.
"Now people are panic buying and not panic selling," said Andy Lee Yiu-chi of Centaline China as quoted by Forbes.