BEIJING: The official Securities Times said on Monday that in the southern Chinese city of Shenzhen, where the real estate industry has slowed, luxury property is resisting the slump. This is due to rich purchasers seeking a safe haven amid a bad market.
It was stated that a total of 604 apartments in a luxury building that has not yet been completed had been presold in the southern tech cluster for up to 162,000 yuan ($23,087) per square meter. The complex has not yet been built.
The fact that the sizes of the apartments range up to 425 square meters gives rise to the possibility that some of them may have attained prices of $9.8 million.
According to the publication, all of the apartments in a development that were selling for at least 18 million yuan apiece were purchased on the very first day that they were available in May.
The Chinese real estate market has experienced a significant slowdown over the past few months, with prices and sales both falling. This occurred after the Chinese government intervened to cut excessive debt held by property developers, which resulted in a liquidity crunch and negatively impacted buyer sentiment.
However, new luxury properties continue to be popular with purchasers, who, according to industry sources quoted by the newspaper, see them as “hard cash” in an otherwise weak real estate market.
Property sales fell by 48 percent on an annual basis in August, despite a flurry of stimulus measures that were adopted by over 200 localities to pique buyers’ interest. This was despite the fact that demand has remained dismal despite these steps.
According to independent property consultancy China Real Estate Information Corp (CRIC), the selling price of luxury properties on average valued at 10 million yuan or more increased by 11 percent from the same time period a year earlier. This was the case during the first half of the year in the current year.