"Overall situation better than last year" Shenzhen's real estate demand continues to be released during the Qingming holiday

Securities Times reporter Wu Jiaming

As the “silver April” that has long been seen in the industry as the traditional peak selling season for the housing market, it has always been regarded as a “critical period” for observing the direction of the market. In particular, the just-passed March saw solid “results” for the real estate market in first-tier cities. The market performance during the Qingming holiday mini-season has drawn especially close attention.

During the Qingming holiday, when the reporter conducted on-the-ground visits to the Shenzhen market, multiple new home sales managers and second-hand housing brokerage managers all said that this year’s real estate market conditions during the Qingming holiday were slightly better than last year, and the accumulated demand in the market continued to be released. At the same time, second-hand housing residential communities around the port area have become the focus of Hong Kong buyers’ home-buying plans.

“During the holiday, Shenzhen remained overcast and rainy for much of the time, but the project still achieved strong sales. On the first day of the Qingming holiday, we sold 3 units; during the entire holiday, we sold more than 10 units. Overall, the situation is better than last year, and the company is also preparing to gradually withdraw the discounts.” At a new home project near Guangyeyuan in Longgang District, a marketing manager said this. “The May Day holiday is even more of a crucial ‘window period.’ We expect the overall market to continue recovering in the near term.”

Regarding the decision to withdraw discounts for new home projects, several homebuyers interviewed believe that this move is mostly a project’s “marketing script.” One homebuyer said: “We care more about the quality and value for money of the property. There are plenty of choices for new homes in the market now, so we won’t rush into a decision just because of this small discount.”

Industry insiders said that since last year, “price cuts to sell homes” in Shenzhen’s new home market is no longer a widespread market phenomenon. It has been concentrated only among a small number of developers under pressure from the capital chain. In addition, some Shenzhen developers’ strategies have shifted from “seeking volume but not price” to “seeking volume and also seeking price.” Moreover, in usual circumstances, for new home prices to show a broad rebound trend, it would need to become evident only after the transaction volume rises for two consecutive half-years. However, the overall transaction volume of Shenzhen’s new homes is clearly not as high as that of second-hand homes.

According to data from Leju Jia Research Center, from April 1 to April 3, Shenzhen recorded a cumulative 361 units of presale and existing-sale signings for first-hand residential homes, while second-hand residential homes totaled 685 units of signings. Combined, the figure has already exceeded 1,000 units. It is worth noting that second-hand homes in Shenzhen ignited the market first, becoming the core engine behind this round of a “small spring rally.”

A senior real estate agent from the Shenzhen No. 2 Middle School district area in Luohu District told the reporter: “In the first few days before the Qingming holiday, Jinli Hao Yuan and Jiahu Xindu residential communities completed several property transactions, and the transaction heat has indeed increased. But prices have not changed much for now—basically in line with the end of last year.” The reporter also interviewed multiple second-hand property brokerage managers across different areas. They all believed that the current second-hand housing market still relies on price support, and that trading volume increasing in response to price is the prerequisite for the market to warm up. “Now homebuyers are very rational. They make a move only when the price is right, and owners also understand this. Many are willing to lower prices moderately to facilitate transactions.”

Meanwhile, the heat in second-hand homes around the port area is even more pronounced. Fu, a real estate brokerage worker in Yumin Village near the Luohu Port, told the reporter that recently, the sale pace of the community’s second-hand home listings has accelerated, even “topping” many institutions’ March rankings for second-hand home transaction volumes. Data from the Shenzhen Real Estate Intermediary Association also corroborates this: the transaction volume of Yumin Village ranked first citywide in March for second-hand residential homes with recorded volume.

“More than half of the customers I connect with come from Hong Kong,” Fu analyzed. “The community is right next to the Luohu Port, and it has a high proportion of small and medium-sized units. Combined with several years of price adjustments downward, it currently has very strong appeal to Hong Kong clients.”

(Editor: Wen Jing)

Keywords:

                                                            Housing market