The report of the “half-price clearance” of luxury housing in Shenzhen has sparked attention. Over the past decade, these luxury apartments have been sold for 290,000 RMB per square meter. This year, there have been significant discounts on some non-residential products in Shenzhen as well.
Recently, several real estate agents and property developers have posted clearance sales news for various luxury commercial apartments in Shenzhen on social platforms such as WeChat Moments.
According to a report by Daily Economic News on February 26, the East Sea International Apartments in the established luxury housing area of Xiangmihu, as well as the Golden Unicorn Mansion in Xili, Nanshan, and the Shenye Zhongcheng project on Hongli West Road in Futian, have attracted high levels of attention.
“For a 77 square meter unit originally priced at 12 million RMB, it is now priced at 5.6 to 5.8 million RMB; a 285 square meter unit originally priced at 34 million RMB is now priced at 18.6 million RMB, dropping from the highest 110,000 RMB per square meter to 65,000 RMB per square meter.”
“A while ago, some investment clients bought a dozen units in bulk, for clearance processing. The 77 square meter units have been sold out, and currently, the smallest available unit is 188 square meters with a total price of 16.55 million RMB, equivalent to approximately 88,000 RMB per square meter,” said property manager Huang.
According to the official WeChat account of East Sea International Apartments, it is a 308-meter-tall premium apartment, listed as one of Asia’s tallest towers in 2016 and one of China’s top ten super luxury homes in the same year. In an era when the average housing price in Shenzhen was 20,000 to 30,000 RMB per square meter, East Sea International Apartments once transacted a 870.99 square meter top-floor unit for 250 million RMB, at a calculated price of about 290,000 RMB per square meter.
In recent years, the real estate market in Shenzhen has experienced significant price fluctuations, especially in the luxury housing sector. For example, a luxury residential community in Shekou saw a 328 square meter unit sold for 55 million RMB in October 2023, but by November, the same unit was sold for 47 million RMB, representing a decrease of 8 million RMB.
Additionally, luxury housing prices in the Shenzhen Bay area have also seen a decline. In June 2024, a 313 square meter unit on a lower floor facing east in Shenzhen Bay No. 1 was sold for only 50.5 million RMB, at a price of around 160,000 RMB per square meter, marking a new low in nearly four years.
These price drops reflect the adjustment trend in Shenzhen’s luxury housing market. In the past few years, luxury housing prices in Shenzhen continued to rise, with some premium properties reaching 290,000 RMB per square meter. However, with changing market supply and demand dynamics and the impact of policy regulations, some luxury housing prices have begun to decline.
Overall, the real estate market in Shenzhen is currently in an adjustment phase, and the price fluctuations in the luxury housing sector reflect changes in market supply and demand dynamics as well as policy regulations. Prospective buyers should pay attention to market dynamics and make rational assessments of investment risks when making decisions.
The luxury apartment complex Jinzhong Qilin Mansion in Nanshan is selling through one-price promotions and special deals. A staff member from an agency representing Jinzhong Qilin Mansion provided a set of statistics, showing that since the project started in February, nearly 30 luxury units priced in the tens of millions have been sold, totaling nearly 300 million RMB in sales.
A staff member from a large local chain real estate agency in Shenzhen mentioned that based on the recent transactions of apartment products, they have indeed rolled out special deal units that attracted a wave of attention; however, the quantity is limited and the main focus is still on other standard property listings.
The report mentioned that recent interactions with several real estate industry insiders revealed that the current high sales volume of apartment products may be closely related to the high rental yield after price reductions, especially for high-quality apartments in locations such as near subway stations that are easily rentable and have garnered significant market attention.
Taking East Sea International Apartments as an example, platforms like Beike.com show that the market rental for a 77 square meter unit can reach 25,000 RMB per month. Based on a discounted total price of around 5.5 million RMB, the rental yield exceeds 5%.
The report stated that since the beginning of the year, apart from East Sea International Apartments, there have been significant discounts on some non-residential products in Shenzhen as well.