Collapse Irreversible! Pre-owned Housing Prices Plummeted by 50%! Bubble Burst, No More Demand!

Astonishing! Shenzhen's housing bubble bursts, Second-hand home prices plunge 50%! Shenzhen, formerly celebrated as China's real estate "Golden City," is undergoing a major change. In Huarun City, located in Nanshan District on the western side of the main urban area, home prices commenced at 45,000 yuan per square meter in 2014. By 2020, the sale price of new developments had soared to an incredible 130,000 yuan. Concurrently, second-hand property prices within the community reached a staggering 180,000 yuan. At that time, new homeowners could secure a profit of 50,000 yuan per square meter if they sold their properties the day after purchasing. A 100 square meter property sold overnight could result in a windfall of 5 million yuan, equivalent to around 720 Thousand USD . The introduction of the guide price dropped the annual trading volume of Shenzhen's property market significantly. In 2020, 95,273 second-hand property transactions occurred in Shenzhen. Following the implementation of the second-hand property guide price in 2021, transaction volume dwindled to 40,699 units. In 2022, the transaction volume plummeted further to a mere 21,700 units. Property prices also experienced a steep decline. By October 2022, the transaction price dropped to a mere 99,000 yuan. In comparison to the peak in early 2021, property prices fell by a staggering 50% in just a year and a half, marking the collapse of the real estate bubble. By March this year, Shenzhen's property prices had declined by 9.5% compared to the same period last year, with the average drop in second-hand property prices reaching 17.8%. Based on actual transaction cases, price drops in some areas of Shenzhen even reached 30-40%, breaking the 30% discount guide price for second-hand properties, with the largest price drop in some communities reaching 43%. #chinahouse #chinaeconomy #chinaobserver All rights reserved.