Anna Zhao

    anna.whizh@yahoo.com

    REAL estate alongside the Shenzhen-Xiamen High-Speed Rail Line could thrive following the line’s opening Saturday, analysts said, with more Shenzhen homebuyers and investors attracted by comparatively lower prices and greater transportation conveniences in parts of Shenzhen and neighboring Huizhou.

    The line has stops at Shenzhen North Station in Longhua New Area and Pingshan Station in Pingshan New Area, and extends northeast to Huizhou.

    The commercial potential could already be pushing up home prices in some areas. Sales staff for a Longhua development said despite steady price increases over the past year, its homes continue to sell out soon after new development phases open. Huizhou, east of Shenzhen, once earned the nickname “Sleeping City” because of its large number of vacant homes. Now its residential property market has shown signs of warming since the beginning of the year. Real estate data shows that 26,685 home transactions occurred in Daya Bay of Shenzhen’s eastern coast in the first three quarters of 2013, with sales revenue totaling 10.8 billion yuan (US$1.8 billion).

    Jiang Shaojie, general manager of Midland Realty, said the new railway is boosting Shenzhen investors’ confidence in real estate near the train stations in Huiyang and Daya Bay. Some developments in those areas have reported 30-percent increases in transaction volumes in recent months, compared to 2012, with 70 percent of homebuyers from Shenzhen.

    “Transportation inconveniences are a major factor in the high rate of vacant homes in the Daya Bay area,” Jiang said. “But the disadvantage is diminished with the opening of the railway.” Jiang said development of Shenzhen’s infrastructure hints at the impacts of the rail line. Real estate that’s along Shenzhen’s Metro lines but far from downtown Shenzhen has shown robust growth in price and popularity, Jiang said.

    Jiang added that low prices also could heighten the popularity of properties in Daya Bay, compared with soaring home prices in Shenzhen. Properties in Daya Bay are selling for 4,500 to 5,000 yuan per sqm, about 20 percent of the average home price in Shenzhen.