Shenzhen Had the Strongest Home Price Growth Among China's Cities in 2015
China's housing market in 2015 saw the rise of home prices in several cities across the country. A recent report has identified Shenzhen as the city that had the strongest home price growth.
Home price growth in China was more apparent in certain markets, although overall the country's home prices grew slightly. However, Shenzhen's rise to the number one spot of 2015's Top 10 China city list in terms of home price growth was unexpected when compared against 2014's statistics. A Forbes report, which cited data from SouFun-CREIS, showed close to 40 percent home price growth in Shenzhen in 2015. The said city's home prices experienced the biggest increase in 2015. Surprisingly, Shenzhen was not even on the list between 2012 and 2014.
Previous SouFun-CREIS data on home price growth across China cities was mostly dominated by Tier 2 and lower-tier cities, according to the same report. Among the top three in 2014's list were Baoding, Xiamen and Shijiazhuang. In 2013, the data showed a mix of tier 1 and tier 2 cities in the top three spots, which included Beijing, Xiamen and Guangzhou. For 2012, tier 2 and lower tier cities were again prominent, with the cities of Heze, Urumqi and Taizhou in the top three.
The same report highlighted that previous historical data may not be a good gauge of the real estate markets in China that will offer a forecast of potential high returns for home sellers. Different cities may experience better housing market performance during certain periods. However, what's apparent is the emergence of Tier 1 cities posting strong home values during cycles when the market is generally up.
Other data points in the report showed that Shanghai landed on the second spot of China cities that posted strong home price growth in 2015 followed by Wuhan, Baoding and Beijing. At the bottom half are the cities of Hefei, Nanjing, Zhengzhou, Langfang and Dongguan.
Meanwhile, Shenzhen Mayor Xu Win stated in a press briefing on Thursday, February 4, that the government is looking at tightening housing policies to help cool rising home prices in the city, South China Morning Post reported. The city has surpassed Beijing and Shanghai in terms of home prices last year and has become the most expensive real estate market in China.
"We are studying on tightening measures, as well as speeding up the construction of security housing, to make sure the price is stabilized at a reasonable range," the Shenzhen mayor stated.