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During this year’s Labor Day holiday, Shenzhen experienced a remarkable surge in home sales and inquiries, reaching levels not seen in the past six years. This increase followed the city’s relaxation of purchase restrictions in key urban areas at the end of last month.
Data from local real estate agency Leyoujia shows that new home sales during the five-day holiday period increased by 48% compared to the same timeframe last year. Second-hand home transactions rose even more sharply, up by 62%. Additionally, the number of property viewings climbed by over 25%.
The city’s new policy, enacted on April 29, raised the number of homes that locally registered residents can purchase in core districts from two to three. It also increased the quota for non-local residents who have paid social insurance or income taxes in Shenzhen for more than a year from one to two. Residents holding a valid local residence permit are now permitted to buy one property.
On the day the policy was implemented, many prospective buyers scheduled home viewings. Some owners, planning to upgrade by selling their current homes in order to buy new ones, abandoned their initial “sell first, buy later” approach and chose to “buy first, sell later,” thanks to the expanded purchasing limits.
The policy also attracted buyers from across the country, especially those holding only Shenzhen residence permits, as it made property ownership more accessible.
Moreover, the policy significantly increased the maximum limits for provident fund loans, boosting individual loans from CNY 1.3 million to CNY 1.9 million (around USD 190,860 to USD 278,950). Household loan limits rose from CNY 2.3 million to CNY 3.5 million.
A marketing representative of a project situated in Shenzhen’s core area shared that inquiries at a well-known property surged 30% on the second day after the policy was enacted. The new rules seem to have accelerated the decision-making process among potential buyers.
Luxury residential developer Shenzhen Bay Yunxi experienced tripled sales during the holiday compared to the average weekly sales in April, with visitor numbers increasing by 27%. A salesperson at the site noted that a large number of high-net-worth individuals from Taiwan, Beijing, Guangzhou, and other regions had flocked to the area during the holiday, motivated by the policy changes.
Many of these out-of-town buyers view Shenzhen property as a stable investment, especially in the city’s prime districts. Real estate inquiries and transaction intentions from clients based outside Shenzhen, including those from Zhejiang province, Shenyang, and Changsha, saw notable increases during the holiday. Some clients even delegated friends in Shenzhen to view properties on their behalf, with plans to apply for local residence permits after the holiday and complete purchases online.
In Nanshan district, new home sales more than doubled from the previous year, with sales of pre-owned homes jumping 85%. In Futian district, new property transactions doubled, and pre-owned homes saw a 77% increase. Bao’an subdistrict also experienced significant growth, with new home sales up 45% and second-hand sales soaring 150%.
Many homebuyers expressed confidence about the market’s potential, with some initially planning to wait several more months before entering the market. The relaxation of policies, however, prompted them to start their buying journey earlier than expected.
Looking ahead, analysts predict that new home sales in Shenzhen are likely to maintain or even surpass last year’s figures for the month of May, while second-hand sales are expected to see marked growth, based on data from the first week of the month.
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