Housing Market in Shenzhen to Remain Sluggish in 2012
Even with the new housing transactions in the last quarter of 2011 failed to push the city’s whole year sale to top over the total of 2010. This showed a ten year low in overall sales. In 2011 Shenzhen only sold 32,000 new apartments, the fewest since 2000 that showed a decrease by 13.2 percent and 15.4 percent in the previous years.
The housing market in Shenzhen still remains sluggish for most of the year, even with a year end spending mood pushed up sales in December it was not enough. Analysts say that housing sales for the first quarter of 2012 will remain languid and home buyers will still be hesitant in purchasing homes.
Shenzhen average housing price still remains at 16,002 yuan per square meter, the second lowest in 2011 and slightly higher compared to May 2011, which was 15,262 yuan per square meter. Housing prices is on a downward road to lower prices since it shoot up for two years running in 2008 and 2009 before finally settling on a level last April 2009 which was reasonable since government tightening already took effect.
If the government will not loosen up its tightening measures, housing sales for 2012 will still remain sluggish for developers. By lowering housing prices will definitely spark the demand back up again and should drop down further by at least 20 percent more until housing transaction will return to normal.