[photopress:real_estate_Shenzhen_explosion.jpg,full,alignright]It matters not whether the idea of melding Hong Kong and Shenzhen ever comes to pass. The fact is that it is a most important entry point to China and real estate prices have only one direction to travel.
Now groups of people in the city are gathering together to buy property. These groups range from just a few people to up to 4,000. There is even one group organized by Southern Metropolis Daily. They spread their net wide and travel to cities around Shenzhen, or places in the Pearl River Delta such as Guangzhou, Dongguan and Huizhou.
A recent exhibition in Shenzhen, sponsored by Southern Metropolis Daily, attracted more than 10,000 Shenzhen citizens to see what was available in Dongguan and Huizhou. Real estate developers from the two cities offered free coaches for Shenzhen citizens to look at prospective houses on site.
House prices in Shenzhen rose from RMB5,000 per square meter in 2004 to RMB10,000 per square meter in 2006, and even shot up to RMB20,000 in the first five months of this year.
Unable to afford local property, Shenzhen citizens turned to nearby cities like Dongguan.
An analysis by a Dongguan real estate company revealed that the percentage of house-buyers from Shenzhen rose from 1% in January to 30% in June in Dongguan’s Liaobu Town.
According to the Dongguan Housing Management Bureau, prices rose from RMB3,600 per square meter in August 2006 to RMB6,864 in July 2007.
House prices in Huizhou have followed suit. More than 60% of new houses in the two cities have been sold to Shenzhen residents.
Source: Beijing Review