During the recent May Day holiday, the real estate markets in Guangzhou and Shenzhen experienced a significant surge in activity. This uptick was driven by a series of newly implemented property policies and a continued recovery in market confidence.
Prior to the holiday, both Guangzhou and Shenzhen rolled out new real estate measures. The impact was immediate, with transaction activity increasing to varying degrees in both cities. Both upgraders and first-time homebuyers accelerated their entry into the market. In Guangzhou, numerous new projects were launched in a concentrated manner at the end of April. New developments in central districts such as Liwan and Haizu attracted considerable attention from potential buyers. A Guangzhou resident, Ms. Meng, mentioned she had been following a particular project for some time and used the holiday to visit, noting her approval of the area's planning and amenities.
Guangzhou's new policy includes an increase in the housing provident fund loan ceiling. Individuals can now borrow up to 1 million yuan, while two or more applicants can access up to 2 million yuan. Families with children purchasing quality homes can receive additional allowances, with a maximum combined loan of 3.6 million yuan. In response, many developers have introduced targeted housing products. Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center, observed a structural shift in transactions. The proportion of flats between 90 and 120 square meters, intended for upgraders, has increased for two consecutive months, indicating that the cycle of selling old properties to buy new, larger ones is gaining momentum in Guangzhou.
In Shenzhen, both inquiries and transactions for new homes saw a notable rise during the holiday period, and the sales cycle shortened considerably. Lin Jianyuan, Deputy General Manager of the Brand Marketing Department at a Shenzhen real estate project, reported a roughly 50% increase compared to the same period last year. He noted strong customer interest and a significantly faster decision-making process, with some buyers making deposits immediately after viewings. Shenzhen's policy focuses on relaxing purchase restrictions in core areas and increasing housing provident fund loan amounts, making it highly attractive to buyers. A Shenzhen resident, Ms. Wang, highlighted benefits such as a lower down payment ratio for first homes and reduced provident fund loan interest rates compared to her previous purchase. Data from the Shenzhen Housing and Construction Bureau showed that from April 30 to May 5, 829 commodity housing units were signed online, a year-on-year increase of 62.5%.
The push for "quality housing" is also capturing buyer attention. The "Residential Project Code," implemented on May 1 last year, set minimum standards for constructing good homes. Guangzhou and Shenzhen are accelerating the adoption of these standards and introducing supportive local policies, leading to a continuous emergence of high-quality residential projects. During the holiday, several Guangzhou developments highlighted their "quality housing" design and construction standards to attract buyers. A new project in Tianhe District, for instance, received numerous reservations due to high interest. Li Zhiyuan, Marketing Director of a Guangzhou real estate project, observed a change in customer priorities, with increased focus on hard metrics like ceiling height, soundproofing, building materials, smart features, and property management services. This shift reflects how the standards for "quality housing" have evolved from regulatory text into tangible purchasing criteria for buyers.
Since April this year, Shenzhen has tailored local standards or action plans for "quality housing" based on its specific conditions. Nationwide, nearly 50 technical specifications and supportive policies related to "quality housing" have been issued over the past year. Fan Hongzhu, Deputy Director of the Standard Quota Department at the Ministry of Housing and Urban-Rural Development, stated that to promote the development of new materials, a "task-based" approach has been adopted, targeting 50 types of new materials for technological breakthroughs. He noted that the construction of "quality housing" is now gaining momentum across the country. The next steps involve deepening the implementation of housing quality improvement projects, focusing on good standards, design, materials, construction, and maintenance to steadily advance the development of "quality housing" in a context-appropriate manner.
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