Housing prices in Shenzhen posted a modest fall in the final month of 2017, following the implementation of property market control policies on late 2016 that have induced 15 consecutive months of price declines.
China Real Estate Business reports that new housing prices in Shenzhen were 54,256 yuan/square metre on average in December, for a decline of 22 yuan compared to 54,278 yuan/square metre in the preceding month.
The decline follows 15 consecutive months of housing price declines in Shenzhen, following the launch of a new round of property market controls in October 2016.
Analysts point out that however, that the price declines have been modest, with the average square metre price for property at 61,600 yuan in September 2016, and prices for pre-owned homes now warming up.
China’s municipal governments stepped up their implementation of property control policies in 2017, which include sales restrictions, purchasing restrictions, restrictions on mortgage lending by banks as well as hikes in initial down payments.
Over 50 cities in China have launched sales restrictions orders for new homes, which prohibit the sale of properties for a period of between two and five years.
Since 30 September 2016, municipal governments around China have launched over 160 property control policies.
The Shenzhen government is expected to maintain tight control of its municipal property market in 2018, following the imposition of five year sales restrictions on four sites for which residential usage rights were transferred on 30 December 2017, situated in the districts of Longshan and Pingshan.
“Shenzhen will not loose its control policies for a very long period of time, and Shenzhen housing price still need to maintain stable development,” said a member of the Shenzhen Planning and State Land Commission to China Real Estate Business.
“Against this background, how we can control housing prices will become the direction of consideration, and we will not exclude the release of sales restricted land sites in other districts.