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Shenzhen second-hand housing market "fever": August transactions fell by more than 15% month-on-month regulation and control effect
Sep 4,2020 08:25CST
Source:Financial Union
The content below was translated by Tencent automatically for reference.

SMM Network News: Shenzhen "715 New deal" after the August property market transaction data has been released, new housing transaction volume increased, second-hand housing volume and prices fell, the second-hand market regulation effect initially appeared.

According to the Shenzhen Real Estate Information platform, 4076 first-hand homes were signed in August in Shenzhen, up 17% from the previous month, reaching a new high in nearly half a year. Among the transactions in the past year, August is second only to December last year.

The record high turnover of new homes is mainly due to the increase in supply. According to the Shenzhen Central Plains Real Estate Research Center, a total of 15 residential projects were approved in August, including one in the Shenzhen-Shantou Cooperation Zone. With the opening of 14 projects, the wholesale residential area was 961000 square meters, an increase of 140.2 percent over the previous month, and the sale of 939000 square meters, an increase of 150.4 percent over the previous month. The area of housing supply has rebounded for four months in a row, reaching its highest level since 2019.

While the supply of new houses has increased, the removal rate has remained high. Shenzhen Central Plains data show that the overall opening rate of 14 projects is more than 60%. Among them, the opening price of two projects in Guangming District has been reduced to 100%, which is the area with the highest removal rate of new housing in August. In addition, the removal situation of Baoan Shajing area and Longhua Minzhi area is also good. The opening rate of two projects in Shajing area is 100%, and the overall opening rate of two projects in civilian area is 96%.

In addition, a number of "Internet celebrities" appeared in Qincheng Dazheng City and Huaqiang City in August, among which Huaqiang City became the first new housing development in Shenzhen with 26000 people registered and 556 units sold out on the opening day.

According to the statistics of Le Youjia, the inventory area has also increased due to the rise in new supply at the end of the month. As of August 31, the inventory area of first-hand housing in Shenzhen is 2.427 million square meters, with a removal period of 7.1 months.

Second-hand housing is much more deserted. According to Shenzhen Real Estate Information platform, 11322 second-hand homes were transferred in the city in August, down 15.6% from the previous month. Data from Leyoujia Research Center show that in August, the average transaction price of second-hand housing was 66002 yuan per square meter, down 1.3% from the previous month, and said that the data of transfer of ownership in the second-hand property market still lags behind, so the number of transfer of ownership has declined, but it is still more than 10,000 units.

"what is different from the new house is that the atmosphere of the second-hand market is getting colder. The 715 New deal adjusted the standard of non-ordinary housing, and the transfer value-added tax was also changed from 2 years to 5 years, which directly affected the transaction taxes and fees of some buildings in the secondary market and increased the cost of buying houses. Under the dual effect of the rising cost of purchasing some houses and the increase in the supply of new houses, the turnover of the second-hand housing market has dropped sharply. " Shenzhen Central Plains Real Estate Research Center said.

But Le Youjia said, "what is different from the decline in the average transaction price is that the mentality of the owners is still strong." According to its statistics, most of the listing prices of second-hand homes in Shenzhen have risen. As of August 31, the average listing price of second-hand housing in Shenzhen was 69000 yuan per square meter, up 1.32 percent from the previous month. Among the administrative regions, only Yantian fell slightly by 0.68% month-on-month, while the rest increased. The highest increase was in Nanshan, where the average listing price was 96000 yuan per square meter, up 2.13% from the previous month.

"objectively speaking, the 715 New deal has not yet deviated from the old routine of the past-making a struggle to control the demand side, while the supply side and fundamentals have not fundamentally changed, and the market's stubborn expectations for a new rebound in the property market in the future have not been reversed." Li Yujia, chief researcher of Guangdong Housing Policy Research Center, told reporters.

At the end of August, Zhang Xuefan, director of the Shenzhen Housing and Construction Bureau, proposed that Shenzhen housing should learn from the "Singapore model". In the future, 60% of Shenzhen residents will live in rented or sold housing provided by the government.

In fact, as early as June 2018, Shenzhen issued the opinions on deepening the reform of the housing system and speeding up the establishment of a housing supply and security system with multi-subject supply and multi-channel guarantee for rent and purchase (draft for soliciting opinions). The housing development goals for the future (2018-2035) were clearly defined, and the proportion of planned market commercial housing, talent housing, secure commercial housing, and public rental housing was positioned 4, 4, 2, 2, and 2. In other words, the proportion of policy-supported housing will account for about 60% of the new supply.

The reporter learned that in Singapore, the ratio of indemnificatory housing to commercial housing is about 8:2.

"there is no problem with achieving the goal of the second housing reform in Shenzhen, at least in terms of quantification. if we are optimistic, we can avoid 'Hong Kong'." Li Yujia said, "the biggest problem facing Shenzhen is to start reform in high housing prices, stabilize land prices, stabilize housing prices, stabilize expectations, and rely on real estate to support Shenzhen's new positioning, which is an 'impossible triangle'. Singapore's housing system has been launched since it was poor and has persisted consistently. "

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