- Title: China's stimulus promises bring property sector hope, rather than confidence
- Date: 15th October 2024
- Summary: SHENZHEN, GUANGDONG PROVINCE, CHINA (OCTOBER 12, 2024) (REUTERS) VARIOUS OF PROSPECTIVE HOME BUYERS AND REAL ESTATE AGENT LOOKING AT HOUSING MODEL VISITORS AT SHENZHEN HOUSING EXPO PROSPECTIVE HOME BUYER ZHANG JING IN FRONT OF PAMPHLET DISPLAY (SOUNDBITE) (Mandarin) PROSPECTIVE HOME BUYER, ZHANG JING, SAYING: "Actually, (interest in home ownership) it's just a recent consi
- Embargoed: 29th October 2024 08:09
- Keywords: china economy guangdong housing market policy property real estate shenzhen
- Location: SHENZHEN, HUIZHOU, GUANGDONG PROVINCE, CHINA
- City: SHENZHEN, HUIZHOU, GUANGDONG PROVINCE, CHINA
- Country: China
- Topics: Asia / Pacific,Society/Social Issues
- Reuters ID: LVA001182415102024RP1
- Aspect Ratio: 16:9
- Story Text: In China's southern tech hub of Shenzhen, the property market is showing signs of recovery.
Some 1,841 provisional new home sales contracts were signed during the Oct. 1-8 national holiday, a jump of 664% compared to last year, according to the city's housing authority. Most of these interested buyers are looking for their first property purchase, analysts say.
Prices in Shenzhen have fallen by roughly 40% from their peak and the city has just relaxed home-buying restrictions. Officials in Beijing have also flagged "significant" fiscal stimulus and promised to stabilise the sector.
Many would-be home buyers first want to see officials deliver what they promised.
Zhang Jing, a 28-year-old finance professional, made enough money from a stock market rally to consider hopping on the housing ladder, which he says will improve his chances of finding a partner for marriage.
"(Home ownership) it's a recent consideration," Zhang told Reuters at a major property fair held over the weekend. "I'm also hoping that the government can introduce some policies to stimulate the economy. But for now, I don't have enough confidence."
Some late-September policy announcements have given real estate a jolt, rekindling interest mainly from first-time buyers like Zhang. The central bank cut interest rates and injected 1 trillion yuan into the banking sector. Then large cities such as Shenzhen, Guangzhou and Shanghai joined the rest of the country in removing most home-buying restrictions.
On Saturday (October 12), Minister of Finance Lan Foan said the government planned to "significantly increase" debt to revive economic activity though he did not elaborate on size or timing, disappointing many who tuned in. A key drag on the world's second-largest economy is a prolonged downturn in the property market, which accounted for roughly a quarter of economic activity at its 2021 peak.
In the neighbouring city of Huizhou, residents are divided on the impact of Shenzhen's success compared to their own property markets.
Entering a housing compound, advertisements read: "Home prices are at their lowest point. Now is the time to buy." Residents said property values have fallen 50-60% in some areas, and many homes remain unsold while construction of new apartment units continue.
Nonetheless, real estate agent Kelly Shen is optimistic that the worst is over.
"Compared to the market before, the transaction volume is rapidly increasing, including the second-hand housing market as well. Some property owners have even started raising prices," Shen said.
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