The real estate market in the tech hub of Shenzhen City in south China's Guangdong Province saw a surge in home viewings and transactions over the three-day Qingming Festival holiday season ending on Sunday, driven by recent favorable housing policy changes.
In late March, Shenzhen implemented major adjustments to its housing provident fund loan and interest subsidy policies. Key changes include significantly increased loan ceilings, up to 1.26 million yuan (170,000 U.S. dollars) for individuals and 2.31 million yuan (315,892 U.S. dollars) for families.
Meanwhile, the adjustments also include reducing down payment ratios, now 20 percent for first-time homebuyers and 15 percent for subsidized housing. A new feature also allows couples to use their housing provident fund accounts to directly offset mortgage payments, simplifying the process and reducing purchase costs for many buyers.
These policy shifts have sparked a rapid response in the housing market, with a noticeable uptick in buyer activity during the Qingming Festival.
"Now that the housing provident fund policy has come into effect, families with a second child, for example, can borrow a loan of up to 2.09 million yuan (285,866 U.S. dollars) through the fund. So this has boosted transactions for one- or two-bedroom homes that meet basic needs," said Jiang Wenkai, a real estate agent.
"The number of inquiries has clearly gone up. More people are coming to view properties, and sales have been going up," said Xie Shuan, another real estate agent.
On the new housing front, data show that 3,079 newly pre-sold homes were transacted in Shenzhen in March, marking a 54.6 percent increase from the previous month and a 9.3 percent rise year on year.
Shenzhen housing market heats up over Qingming Festival
