Shenzhen Takes Housing off Market as Advertised Prices Exceed $28,000 per Square Metre
The southern tech hub of Shenzhen has forcibly removed chunks of housing from the market following concerns that real estate companies are inflating prices on Internet sales platforms to untenable levels.
An investigation by 21st Century Business Herald found that housing in multiple parts of Shenzhen has been forcibly removed from sale on certain real estate platforms, including the districts of Nanshan, Shekou, Baozhong and Guangming.
According to one source the removals arrive after the advertised prices for certain key residential properties rose to above 200,000 yuan (approx. USD$28,253) per square metre, such as Wang Hongpan (网红盘) and Nanshan Biaogan (南山标杆).
Sources said that authorities are banning transactions of pre-owned homes whose per-metre advertised price is 200,000 yuan or more.
Shenzhen’s housing department has reportedly issued a notice warning against the advertising of inflated prices that are significantly above market prices, and the launch of investigations where prices are advertised at 200,000 yuan or more.
Shenzhen’s housing minister has also publicly addressed concerns about the problem of speculative real estate investment by new migrants to the city, as well as a potential loosening of property market curbs in the wake of the COVID-19 pandemic.
At a public event held on 28 April Shenzhen housing chief Zhang Xuefan (张学凡) highlighted the adoption of a range of property control measures including requirements that homebuyers be residents or registered tax payers in Shenzhen for at least a year.
“We have prepared many different measures,” said Zhang
“For example at the transactional stage, measures for high-price housing including reduced leverage, high interest rates and high-duties, which are differentiated from standard housing.
“At the ownership stage, we subsequently are also considering real estate tax issues. These are all included in policy considerations, it’s just a mater of when to unveil them depending on market conditions.”