Double nature of Shenzhen real estate market: sales market hot leasing market cold

 Double nature of Shenzhen real estate market: sales market hot leasing market cold

Author: Wu Junjie, No.1 Finance

After the rise of second-hand house prices returned to the first place in March two years later, the sales price of second-hand housing in Shenzhen rose year on year in April 10.3% Leading the first tier cities, with a strong recovery in the real estate market.

According to the monitoring data of Shenzhen Zhongyuan Research Center,

In April, Shenzhens rental return continued to decline to a low level since 2019.

Market participants believe that this is directly related to the increasing supply and weak demand side of Shenzhen housing rental market. In Shenzhen, where the tertiary industries such as foreign trade and science and technology are active, the economy and the employment of young people are more or less affected by the epidemic in a short period of time, which also weakens the demand for housing rental. It may take some time to fully recover to the previous level.

Rent by chance

In April, when novel coronavirus pneumonia epidemic risk was gradually eliminated, the property market of Baoan Bao Zhong district that just needed to buy houses gathered fire overnight. In the past, 80 thousand yuan per square meter of second-hand housing sales rose to about 100 thousand yuan per square meter.

According to the data released by Shenzhen real estate information platform under Shenzhen housing and Urban Rural Development Bureau, the second-hand commercial housing transactions in Shenzhen in April were sixty-five point nine four 10000 square meters (7679 sets), up year on year 0.78% u3002

However, the leasing market is a different look.

Recently, there are more and more overstocked houses. There are plenty of rental houses in every area of Shenzhen, but they are easy to sell and hard to rent. Many landlords cant find tenants to reduce their rent. Liu Mingqi, a leasing broker, said that in the past, the annual increase in rent for individual owners was between 3% and 5%, and few owners raised prices this year.

Baoan District, where Liu Mingqi is located, is a gathering area for foreigners. Many white-collar workers working in Nanshan and Qianhai, and migrant workers working in nearby industrial parks such as Shajing, will choose to rent in Baoan District. In addition to convenient commuting and mature living facilities, tenants at all price levels are easy to find desirable housing. But this years real estate market in Shenzhen made him a little confused.

According to the monitoring data of Shenzhen Zhongyuan Research Center, in April, the return rate of rent in Shenzhen continued to decline, and in April, the monthly rent of housing in the city was seventy-one Yuan / m2, up on a month on month basis 0.10% , rental return continues to decline to 1.41% , which has been a low level since 2019.

Even the property at the subway entrance is vacant in Baoan. Its too difficult to rent out the house. Its an unforeseen situation. Chen Xiaoxia, the leasing agent, said that even if the time for renewal is up, the landlord owners will not go up too much. Its better to stabilize the existing tenants.

The rent situation of the villages in the city where people from other places gather is not optimistic.

The continuous decline of rental return rate and rental price is not limited to Shenzhen. According to the shell data report, this kind of situation occurs in 18 key cities. The average monthly rent in the first quarter was forty-two point eight Yuan / square meter, down 12% year-on-year, and many of Shenzhens housing rents fell again and again.

In the view of some market participants, the housing rental market has a direct relationship with the increase of supply in Shenzhen rental market.

Our company has taken over a lot more rentals this year than last year. For example, in areas with active leasing activities such as Gushu and turnaround in Baoan District, the rent list released this year has increased by about 50% year-on-year. The head of a medium-sized leasing brokerage company said that many leasing brokerage companies around him have encountered similar situations.

Many market participants believe that the economic and young peoples employment problems are more or less affected by the epidemic in the short term, and it may take a while for them to fully recover to the previous level. However, Shenzhen has a large number of young immigrants and a strong potential demand for housing rental. In particular, the threshold of buying a house and getting on a car in Shenzhen is increasing year by year, which makes many people believe that the fundamentals of the rental market in Shenzhen cannot collapse.

But Shenzhen is more of an ordinary tenant, who cant beat the rate of rising house prices after entering 10000 yuan a month, and cant collect enough down payment, get on the car, and become a vast and turbulent rental army.

The sudden attack of the epidemic also deepened the understanding of Shenzhen real estate market of the post-90s generation. From the second light of tens of millions of luxury houses and apartments in early March to the tea drinking fee in the property market in April, to the quotation data observation table of sample real estate projects in hot area issued by Shenzhen Real Estate Agency Association for the first time recently.

It has long been realized that it is difficult to buy a house in Shenzhen, and that the owners of the apartments in the villages in the city believe that a large group of tenants, active or passive, will enter the rental market. Many of them have already started self rescue tiktok, WeChat group diffusion and rent reduction video, so that the old tenants can help their respective villagers and classmates to ask if there are any tenants coming to the deep.

In the view of many Shenzhen people, compared with the hot market of house purchase, the real face of Shenzhens real estate market is that the volume of sales increases, the volume of transactions decreases, the rent or the rental market with a small downward trend.