Over the past months, China has been experiencing economic turmoil and turbulent market trends. Yet, there is one Chinese city that still has its booming market recently - Shenzhen.
This southern Chinese town neighboring Hong Kong has housing prices that have a 46 percent rise since the first quarter of 2015. Shenzhen's increase was the most among all cities in China, Wall Street Journal reports. Housing prices in Shanghai rose to 16 percent while Beijing's was 10 percent; both rise took place in 2015. This is translated from last year's prediction that time element is the only factor for Shenzhen luxury homes prices to be at par with those in Shanghai and Beijing, as per China Daily.
Said peculiar rise of Shenzhen City among the rest is due to the Chinese government's loosening of restrictions on mortgages, contributing to the city's bloom in 2014. Another factors that helped the city's real estate boom are the limited supply of products, the growing technology companies, and less buying restrictions that draw people into the city, The Real Deal reported.
Recent reports show that Shenzhen now tops Hong Kong, one of the world's most expensive real estate housing markets which housing prices were 19 times average income in 2014, as per Demographia, a research firm. It has been noted that Shenzhen's home prices were 20 times the average income in 2014, and is now over 20 times, as per The Journal, specifically from the data in E-House China R&D Institute.
Moreover, Global Property Guide recorded that the sale of duplex apartments and four-bedroom units has contributed to the biggest quarterly increase of 40.8 percent and 41.9 percent as of December 2015.
Meanwhile, Guangzhou's housing prices had risen on a quarterly basis. In the third quarter of 2015, Guangzhou's house prices rose by 10.8 percent, as per Guangzhou Municipal Land Resources and Housing Administrative Bureau.
