Zhang Yu

JeniZhang13@163.com

SHENZHEN’S real estate market has shown signs of resilience and growth, thanks in part to the rollout of aggressive market support policies and growing optimism, according to the real estate consultancy Savills.

Carlby Xie, head of market research for South China at Savills, said Wednesday that Shenzhen’s real estate sector is on an upward trajectory as market sentiment has improved and new policies have gained traction. According to Xie, the city’s real estate market regained momentum during the second quarter, as indicated by an increase in activity.

“As we look to the second half of the year, despite lingering macroeconomic uncertainties, Shenzhen’s real estate sector is poised to exhibit further momentum. This is due to growing market expectations and the continued impact of policy initiatives,” Xie said.

Shenzhen’s office property sector has experienced a significant increase, with quarterly net absorption rising 1.4 times to 84,000 square meters. This growth is attributed to aggressive leasing strategies and a slowdown in new supply, resulting in a decrease in the city’s vacancy rate, as per statistics from Savills.

The retail property sector has also shown positive trends, with several well-known brands establishing a presence in Shenzhen for the first time. This has led to a four-quarter decline in the retail space vacancy rate, which now stands at 8%. “With the government’s rollout of initiatives to stimulate spending, coupled with the synergy between Shenzhen and Hong Kong’s consumer cultures, the attractiveness of the Shenzhen retail sector is expected to expand further,” Xie stated.

The new home market has experienced a significant increase in activity, with the transaction area for the second quarter rising by 10.5% to reach 718,000 square meters. This surge is attributed to a series of favorable policies aimed at stimulating the market, according to the real estate consultancy.

Shenzhen’s new home market is expected to continue its gradual recovery in the near future, with average transaction prices projected to stabilize by the end of the year, according to Savills.