The housing market in the southern Chinese city of Shenzhen has cooled significantly as anti-speculation measures and a decelerating economy have sped up market contraction, resulting in sales of second-hand homes to fall to a 15-year low, reports the South China Morning Post. Sales of second-hand homes dropped 60% to 40,699 last year, from 95,273 transactions in 2020, according to data provided by the Shenzhen Real Estate Intermediary Association. Last year’s volume was the lowest since 2007.
Shenzhen’s sales plunge underscores the challenges that lie ahead for China’s government in resuscitating growth in China’s version of the Silicon Valley—home to several of China’s largest technology companies from Huawei Technologies to Tencent Holdings and DJI—amid a resurgent Covid-19 pandemic and a slowing economy.
“The upwards-spiral era of home prices is gone, and home buyers are more willing to wait on the sidelines,” said Fion He, director of Midland Realty’s research unit. “The trend is particularly clear when we look at the dormant lived-in homes in Shenzhen after reference home prices were released last year.”