Home Prices to Increase by 10 Percent before Year Ends
Real estate analysts said that they are expecting the average home prices in Shenzhen for this year to increase 10 percent higher than the average compared in 2012. Last year’s prices were at 18,906 yuan per square meter and the monthly home prices in average until November was above 20,000 yuan per square meter.
Based on the statistics that was released by the city urban planning, land and resources commission showed that the November home prices on average was at 21,684 yuan per square meter lower than the average prices five months ago. While December home price on average is said to reach 22,000 yuan per square meter. Local home prices still continue to increase even with the recent government measures that were intended to curb home prices which included purchase restrictions, price ceilings and tighter loan policies.
The prices might still increase and is fueled possibly by the demand of residents that are taking advantage of local home loans to purchase their first homes. Some local home buyers waited and looked over the market in the past two years and finally bought their hoes this year after they didn’t see any drop in prices and the hopes to capitalize on their increase didn’t push through.