Yang Yunfei

1017800664@qq.com

SHENZHEN, one of the cities with the most expensive housing markets in the country, has seen some positive signs of a tentative recovery in its property market as a series of government stimulus measures aimed to help revive activity in the sector have some impact among buyers.

During the eight-day Chinese New Year holiday that ended Saturday, transactions in second-hand houses and new homes in the city soared compared with the same period a year ago, as per official data released by the city’s housing and construction bureau Monday.

A total of 17 newly built residential properties were sold during the holiday and these housing units cover a combined area of 0.32 million square meters, a 125% increase compared with the daily average transaction area a year ago, the data show.

The 17 deals translate into a daily average transaction of two houses sold, rising from zero a year earlier.

Transactions of second-hand homes more than doubled from a year ago to seven units during the holiday, with a total area of 739.48 square meters.

Shenzhen’s housing market is regaining some of its footing following recent government support measures and the latest data offer some comfort that the market is likely to stabilize, according to an agent at Centaline Property Agency, one of the main property agencies in Shenzhen.

“However, it still takes time to see whether the housing market has bottomed out in the long run,” he said, declining to give his name.

In November last year, Shenzhen introduced two new home-buying measures on the same day as authorities ramp up efforts to arrest a slump in the property market.

Local authorities announced a cut in down payments to 40% for second homes from as much as 80% and relaxed the definition of “ordinary housing,” or non-luxury homes, that qualify for lower down payments.

The easing in Shenzhen comes after Guangzhou, provincial capital of Guangdong, cut down payments by almost 30 percentage points to 40% in September.

The new rules are aimed to encourage home upgrades, drive demand for larger homes and boost buyers’ confidence, industry analysts said.

Shenzhen further eased housing restrictions earlier February by allowing married residents with local household registration, or hukou, to buy two houses and single hukou holders to buy one.

Meanwhile, homebuyers without a hukou are allowed to purchase a home in the city after paying personal income taxes and social insurance for three straight years instead of five.

The new policy has greatly eased home buying restrictions for local residents as residents with a hukou previously were required to pay personal income taxes and social insurance for three consecutive years to buy a home.

People in Shenzhen have shown interest in upgrading their homes following the introduction of these support measures, as shown by the increasing number of people viewing homes after the new homebuying measures, agents at local realtors said.

Website views by potential buyers looking for new homes surged by 151% during the Spring Festival holiday week compared with the previous week, according to housing information platform anjuke.com.

Most local developers continued their marketing efforts even during the just-concluded holiday, launching a series of promotional activities ranging from limited discounts, special housing offers, home decorating packages to other incentives to attract visitors. Some properties even opened for sale on the third day of the Chinese New Year.

As many people returned to their hometowns for holiday reunions, leading to a decline in visits to new housing projects in February, the effects of the latest round of easing measures, which are expected to gradually kick in, are not fully shown only through the housing and construction bureau data, industry analysts said.

“Traditionally, the Spring Festival is a slow sales season for the Shenzhen real estate market. The easing of home purchase restrictions can definitely boost demand,” the Centaline agent said.

“As it takes time to record new housing transactions, more positive effects of the easing policies are expected to become apparent after the holiday,” he added.