High Prices Led to Fewer Sales for the Month of December
Around 3,000 new homes were sold in Shenzhen last December which is 29 percent less that the total amount of homes sold in November. Average price of a new home was at 20,695 yuan per square meter which is also a 4.6 percent drop on the average price since November. And new homes sold totaled 307,000 square meters which is also 32 percent less compared to November.
Average home prices in Nanshan reached 41,486 yuan per square meter the highest in the city so far. Meanwhile the average home process in Futian is 40,726 yuan per square meter and Longgang still has the lowest average home prices since November which is 16,600 yuan per square meter or 15 percent lower than the average. And for the month of December around 2,236 new homes were sold in Longgang which is 65 percent of the amount of new homes sold in the city.
Real estate developers said that the low prices and few sales led to fewer choices paired with a tight loan market in the year end. A lot of developers were not willing to place new homes on sale as the year ended. A real estate developer in Longgang was given the approval to sell more than 800 homes but only put up half of it on the market and will be selling the remaining half this month. Furthermore home buyers found it hard to get loans from banks and some had to wait for a long time which led them to cancel their plans in buying homes until the following year.