Shenzhen and Guangzhou housing markets see pickup during National Day holiday

Property markets in Shenzhen and Guangzhou gained traction during the National Day holiday period, accompanied by rising property viewings and transactions, although some buyers continue to exercise caution regarding the market outlook.

According to statistics from the Beike Research Institute that were cited by China Daily, transaction volumes for second-hand homes at Beike partner stores in Shenzhen rose 23 percent year-on-year from 1 to 5 October. 

Data from the Leyoujia Research Center further showed that new home viewings at Leyoujia outlets in Shenzhen during the first five days of the weeklong holiday grew 37 percent on a monthly basis, while transaction volumes increased 28 percent. The pre-owned home market also recorded growth, with viewings up 30 percent month-on-month and transaction volumes remaining on par with levels from a month earlier.

[See more: Most Macao residents are unwilling to work in the GBA, survey finds]

An agent surnamed Huang working for Centaline Property in Shenzhen noted a visible increase in enthusiasm for property viewings during the holiday, mentioning that young buyers are increasingly favouring newer buildings equipped with good community environments and transport links.

Furthermore, preferential housing policies have attracted more non-local buyers to Shenzhen, where they benefit from shorter decision-making cycles and expedited signings. Earlier this year, Shenzhen eased its housing policies to stimulate the property market, allowing non-local buyers to purchase two residential properties in non-core areas without needing social security or individual income tax records.

Activity rises across the Shenzhen and Guangzhou housing markets

Financial support has also been introduced by the central government through interest subsidies for housing loans, China Daily reports. Eligible first-time homebuyers can receive an annualized 1-percentage-point subsidy on loans for up to 1 million yuan (US$149,00), provided each unit has a floor area of no more than 120 sqm and the purchase price is capped at 1.5 million yuan.

Meanwhile, developers in Guangzhou ramped up promotions during the holiday. A new project in the Haizhu district achieved 80 million yuan in sales on 1 October and another in the Tianhe district recorded sales in excess of 50 million yuan on the same day. 

Despite these figures, some prospective buyers told China Daily they would observe how recent supportive policies will impact the wider real estate market before committing. 

New home sales prices in Shenzhen and Guangzhou increased 0.2 percent and 0.1 percent, respectively, on a monthly basis in August, according to official figures. Prices in Shenzhen rose 0.1 percent for pre-owned homes, while those in Guangzhou remained unchanged.