Property agency Centaline states the housing market in Shenzhen, a booming town in south China, has rebounded since the start of this year, and predicts prices will stabilize from now on.
Shenzhen is seen by many as a lead indicator of the country’s real estate market. Property prices in Shenzhen plunged late last year to hit levels 40% below their 2007 peak.
Andy Lee, the managing director of Shenzhen Centaline Property Agency, a subsidiary of Hong Kong-based real estate agency Centaline Group, said, ‘Prices have rebounded by 10 to 15% from the bottom seen between October and November last year.’
Reuters reported that despite this he did not necessarily see prices soaring again.
He said, ‘Taking all factors into account, we expect property prices to fluctuate in the range of five per cent through the end of this year.’
China’s house prices declined substantially and sales volumes shrank in 2008 as growth in the world’s third-largest economy slowed.