Shenzhen Takes Second Place in Terms of Price Increase for New Homes
Shenzhen takes the number two spot in price increases for new homes among other Chinese cities for the month of March with an average increase of 2.8 percent from February. Wenzhou is the only city to see a decline in its average home price, and Shanghai took the top spot with the highest in the country.
Average price for pre owned homes in Shenzhen have increased 2.3 percent last month ranked third after Beijing and Shanghai which both cities saw its highest single month increase of 3.1 percent and 2.6 percent respectively. The price for a new home in Shenzhen increased 9.1 percent compared to March last year and its increase for pre owned houses also increased 6.2 percent.
The housing market blew up in March because of a huge demand due to the annual peak buying season. Buyers were rushing to make home purchases in anticipation of the implementation of the new home tax law that levied a 20 percent tax on capital gains coming from home sales which could push up purchase costs. The market will slow down once the new housing tax takes effect.