In 2019, the transaction of first-hand and second-hand houses in Shenzhen was reported to be successful, and the transaction volume of second-hand houses was twice that of first-hand homes
The biggest reason is that the supply of new houses was slower than expected, prompting buyers to shift to the second-hand market to find units.
According to the Shenzhen Real Estate Information Network, 37,882 first-hand residential units were sold in Shenzhen in 2019, an increase of about 29% year-on-year. Among them, Yantian District recorded the highest increase, with 1,922 first-hand transactions recorded throughout the year, an increase of 7.4 times year-on-year; The second is Futian District, where the annual transaction volume has increased by 1.5 times, and a total of 1,480 first-hand residential transactions have been recorded. Among the 6 districts, only Luohu District and Nanshan District saw a decline in transaction volume instead of decline, with declines of approximately 38% and 3%, respectively. The first-hand residential transactions in Luohu District showed a significant decline, which was related to the pre-sale of only one project last year.
New supply in Baoan District reduced by 50%
In fact, based on the whole year of 2019, the number of pre-sale units in the first-hand homes reached 45,686 during the year, an increase of about 17% compared to 2018. Among them, Longgang District is still a concentrated area of new developments. Last year, there were about 15,917 homes available for pre-sale. Sales of Bao’an District, which is also a second-tier area, had only 5,903 dwellings available for pre-sale last year, a year-on-year decrease of 54%.
As for the area of transaction units, for the whole year, units below 90 square meters accounted for about 49% of the total transaction volume, reaching 18,466; while for large units of 144 square meters and above, only 1,697 transactions were recorded, accounting for about 4%.
In contrast, Shenzhen’s second-hand residential properties performed more prominently in 2019, with 77,149 second-hand housing transactions recorded throughout the year, an increase of 19% compared to approximately 64,627 transactions in 2018, although the increase was not as good as first-hand housing, but the transaction volume was first-hand.
The transaction volume was doubled, and the second-hand transaction volume in District 6 increased at the same time
The largest volume was 18,417 units in Bao’an District, up 35% year-on-year, which reflected the decrease in primary supply during the same period and buyers shifted to second-hand sourced units.
In addition, Yantian District was the region with the largest year-on-year increase in transaction volume in District 6, with an increase of 39%, and 1,885 second-hand housing transactions were recorded throughout the year.