A new residential property development in Shenzhen created a sensation Sunday when all 116 of its apartments were sold less than three hours after being listed for presale.
The Haideyuan A estate, located in the Antuoshan area, Futian District, became the first residential project in the city to achieve such a remarkable feat since the beginning of this year.
The average price of the 116 apartments was 128,500 yuan per square meter. The smallest apartment has an area of 87 square meters and sold for 11.24 million yuan (US$1.5 million), while the biggest is 450 square meters and sold for 59.98 million yuan.
These swift sales are another sign of warming in the city's real estate market, which has continued a clear trend of recovery since June as sales of new and pre-owned homes increase, according to industry insiders with the city's Shenzhen Real Estate Broker Trade Association.
Industry insiders suggest that the recent wave of supportive policies for the beleaguered property industry at the national and local levels has raised expectations of market turnaround and homebuyer happiness. These initiatives have had a particularly pronounced effect on first-time homebuyers and those looking to upgrade to better housing, spurring their active participation in the market. The robust sales performance of the Haideyuan A estate has significantly strengthened the confidence of prospective homebuyers.
According to the association, a total of 3,656 new housing units were sold across the city in June, a 46.1% increase from the previous month and a 9.6% increase compared to the same period last year, achieving a record high since May 2023. Of the total, 72% were located in Longgang, Longhua, Bao'an, and Guangming districts.
The pre-owned housing market also saw robust performance. With 4,172 units sold in June, there was a 5.3% month-on-month increase and a substantial 73.3% year-on-year surge, reaching a new peak since the start of 2023. Approximately 73.3% of these transactions took place in Longgang, Futian, Nanshan, and Luohu districts.
More than 70% of new homebuyers in the first half of this year are people with a Shenzhen household registration, or Shenzhen hukou, according to the association.
Futian and Nanshan districts, along with Qianhai and the Bao'an CBD, reported higher sales of high-end and cost-effective residential properties.
The encouraging performance has also helped shore up confidence of property developers. It is projected that a total of 54 residential developments in the city will begin sales in the latter half of the year.
Since May, the national and local governments, including Shenzhen, have announced a series of real estate stimulus policies, which include lowering down payment ratios, cuts to mortgage interest rates, and efforts to reduce home inventories.