THE trading volume of apartments in Shenzhen dropped by 26.4 percent in January compared to December last year, the Southern Metropolis Daily reported Saturday.

    A report released by Midland Realty showed that 4,399 apartments were sold in Shenzhen last month, including 1,652 new apartments and 2,747 pre-owned apartments. The trading volume saw a month-on-month decline of 26.4 percent.

    The average transaction price for new homes last month was 54,931 yuan (US$7,994) per square meter, a slight drop of 0.03 percent compared to December.

    According to the report, the decline in trading volume was caused by the insufficient supply of new homes, the wait-and-see attitude taken by homebuyers towards the housing market and the halt of transaction services during the Spring Festival holidays.

    The report also noted that the number of new apartment transaction contracts that were signed online decreased for three months after new property policies were introduced by the city government to tame the property market in October last year.

    Three real estate projects were approved for sale last month, while seven new projects entered the market. However, as many homebuyers lacked confidence in the market, some property developers lowered the prices of their apartments.

    The trading volume of pre-owned housing declined in all districts. The trading volume in Nanshan District dropped by 37 percent to 458 last month, the sharpest decline among all districts and new areas in the city.

    A total of 673 pre-owned apartments were sold in Longgang District last month, accounting for one-quarter of such sales in the city. In Luohu District, the trading volume of pre-owned apartments dropped by 18 percent to 569, while the trading volume in Futian District fell by 25 percent to 520.

    The report noted that the housing market in Shenzhen is moving into an adjustment phase, and more property developers are expected to enter the market next month. (Zhang Yang)