Shenzhen Housing Policy Changes Unlikely to Spur Demand Amid Economic Uncertainty
• Easing of Shenzhen’s housing policies may lift sentiment but spurring actual demand remains limited due to economic uncertainty.
• Policy change allows more buyers to purchase second homes, resulting in a surge in website views and home viewings.
• However, more homeowners are urgently selling rather than buying new homes. Policies have positive but limited effects.
• Prices have declined over past year in Shenzhen and nationwide. Sales values for top 100 developers fell 29.2% versus last year.
• Sentiment remains weak as buyers hesitate to take on mortgage burdens amid economic downturn. Many doubt policy’s effectiveness to revive market.