[Shenzhen] Property prices and rents increase

THE average housing price in Shenzhen reached 14,223 yuan (US$1847.14) per square meter in May, 22.86 percent higher than the figure recorded in April.

Nanshan District saw the highest housing prices with the average price of an apartment hitting 21,988 yuan per square meter in May while Longgang District recorded the lowest housing prices among the city’s six districts, 11,500 yuan per square meter, sources from the municipal land and property transaction center said.

Housing prices have been rising since the beginning of the year, with the average price in May some 3,500 yuan more per square meter than in January.

Meanwhile, rents for apartments also rose by more than 9 percent between January and May across the city, compared to the same period last year.

Apartment rents in Futian District rose by 10.57 percent, followed by Nanshan at 10.26 percent and Yantian 9.74 percent, according to a report released by the Shenzhen property leasing management office Monday.

The apartment rent increase in Futian District was due to the improvement of urban facilities in communities.

Rents in the Meilin area increased by 10-20 percent compared to the same period last year. The increase will keep growing in the long term, according to the report.

Apartment rents in Nanshan’s central area have increased due to the construction of the Western Corridor, a bridge which links Shenzhen and Hong Kong and is scheduled to open in July. The opening of new expressways and cleanup of rental apartments also prompted the district’s rent increase.

Apartment rents in Luohu grew nearly 8 percent.

In Longgang and Bao’an, the two districts outside the Special Economic Zone, rents increased by 9 and 9.57 percent respectively.

The opening of new roads in Bao’an’s new residential quarters promoted rent increases of 10-12 percent, but the rents of low-quality old apartments dropped by 5-8 percent in the district.

In Longgang District, rents in Longgang and Longcheng subdistricts increased by nearly 10 percent due to the construction of the extension line of Metro Line 3 and 2011 Universiade-related facilities.

But rents for office buildings, factory houses and warehouses remained stable across the city, compared to the same period last year, except those in the Huaqiangnan area of Futian District.

Office rents in Huaqiangnan rose by 7 percent from January to May, with the facelift of buildings in the area and opening of underpasses connecting the area with Huaqiangbei, the city’s commercial and shopping center.