SOME real estate experts told potential homebuyers in the city to stay calm as home prices in Shenzhen continued to rise for the fifth consecutive month, Shenzhen Economic Daily reported yesterday.

    According to the National Bureau of Statistics, home prices in Shenzhen led the growth rate over the past five months in China. In addition, many new homes were reportedly sold out in a few hours after they were first released onto the market, Chinese-language newspapers reported earlier.

    “Residents should avoid making decisions on impulse but should meet their own needs,” said Jiang Shaojie, a manager with Midland property agency. He advised people not to buy apartments in the areas where the home prices have increased too fast.

    New homes sold for more than 100,000 yuan (US$16,130) per square meter are now seen in some districts like Yantian and Nanshan. A top-floor apartment in Shekou, Nanshan District, was sold for 200,000 yuan per square meter last month.

    In addition to a series of favorable policies by the Central Government, short land supply is another reason that is driving the home prices up. According to official statistics, the city will have 30 square kilometers of new land suitable for construction in the next five years.

    “The land supply in Shenzhen mainly comes from urban renewal projects, which takes a long time to complete,” said Wang Feng, a property expert.

    Some industry professionals believed that home prices will continue to rise because the city has a good quality of life and high economic growth prospects, attracting some companies to relocate to the city.

    “Compared with Beijing and Shanghai, home prices in Shenzhen are still cheaper,” said Song Ding, a property expert.

    (Luo Songsong)