SHENZHEN on Monday released a reference price list for pre-owned housing in 3,595 residential housing estates, in a bid to curb speculation and promote a transparent real estate market, local media reported.

The Shenzhen Municipal Housing and Construction Bureau, which issued the list, said it will release official reference prices for pre-owned housing transactions on a regular basis.

The housing authority said the move aims to reaffirm that “housing is for living in, not for speculation” and to advocate for rational housing transactions.

It is also expected that the novel mechanism will guide real estate agencies to issue reasonable listing prices and help commercial banks to control loan risks through a higher level of information transparency.

The bureau stated that the reference prices are based on factors such as the transaction prices on official websites and the prices of new apartments nearby.

The reference prices for pre-owned homes in residential communities will be published on the official website and WeChat account of the bureau, as well as on real estate information platforms.

Wang Feng, director of Shenzhen Real Estate and Urban Construction Development Research Center, disclosed in an interview with Shenzhen Special Zone Daily that the reference price list for pre-owned housing will, in principle, be released on a yearly basis, and may be adjusted to a half-year release amid a more volatile market.

Wang said the policy is unlikely to have a big impact on first-time homebuyers. With the rollout of reference prices, buyers will have new expectations when buying an apartment.

Meanwhile, the pre-owned home prices listed by real estate agencies should not be higher than the reference prices, and commercial banks should also issue loans with reference to the price list to maintain market stability.

Wang said relevant departments will subsequently issue specific implementation rules to further strengthen the supervision of the real estate market.

Wang believes that the government will also increase the supply of new homes. In the long run, the reference prices for pre-owned housing will lead to a more rational market, which is conducive to first-time homebuyers.

(Zhang Yu)