THE sky’s the limit in Bao’an’s housing market with prices of pre-owned apartments growing faster than any other district of the increasingly expensive city.

    Prices of pre-owned homes in Shenzhen reached a record high in the first quarter of this year, and Bao’an recorded the fastest growth in home prices, Shenzhen Economic Daily reported yesterday.

    The prices of pre-owned homes in Bao’an District grew by 16.2 percent compared with the same period last year, with the average price reaching 25,651 yuan (US$4,138) in the first quarter. The average price of pre-owned homes citywide was 29,193 yuan per square meter, up 14.1 percent compared with the same period last year.

    The fast growth of home prices was a result of a favorable policy environment, said real estate analysts with Zhonglian-Lianjia. The government earlier this year lowered the required down payment, while easing tax policy to exempt homes sold two years after their purchases from the sales tax. Previously, homes sold less than five years after purchases were subject to a 20 percent sales tax.

    This spurred more buyers to enter the housing market and property owners to raise prices to take advantage of the increased demand. Home prices in Bao’an are usually lower than Nanshan and Futian districts, and its location near Qianhai, part of the just-launched Guangdong Free Trade Zone (FTZ), made the district popular among many homebuyers. Home prices in Qianhai and Shekou are also being pushed up by the launch of the FTZ.

    Analysts said a loose monetary policy is expected to further spur the growth of housing prices. The central bank cut the reserve ratio for commercial banks by one percentage point last month.

    “It is expected that the transaction volume of pre-owned homes in the second quarter will go up by up to 70 percent,” the newspaper quoted an unidentified analyst with Zhonglian-Lianjia real estate agency as saying.

    Many homebuyers made purchases because they are worried that home prices will continue rising. Many homeowners are also bullish about the housing market.

    A homeowner looking to sell recently raised the price of his 133-square-meter duplex apartment in downtown Bao’an District to 8 million yuan. His price was 7.5 million yuan before the Spring Festival in February.

    “There are quite a few potential buyers who came to check out my apartment in recent days. They showed great interest. I’m sure I can sell it for 8 million yuan,” said the homeowner, surnamed Chen. (SD News)