Traditional means can’t restrain the prices of Shenzhen

Shenzhen is still one of the most attractive cities in China.
On March 11, Shenzhen disclosed its population statistics. In 2019, the increase in permanent resident population was 4122000, second only to 554000 in Hangzhou, ranking second.
In 2018, Shenzhen was the city with the largest net population growth, with 498300 permanent residents added in that year.
About 400000 to 500000 people flow into Shenzhen every year, and less than 30% of Shenzhen’s permanent residents have their own houses.
What’s more, land resources in Shenzhen are extremely scarce.
Shenzhen covers an area of 1900 square kilometers and has a population of 17 million. In addition to the mountains, forests and lakes, the actual land use of Shenzhen is more than 1000 square meters. Shenzhen just needs the strongest demand in the world.
In particular, the main urban area of Shenzhen has become the most popular pastry.
Shenzhen’s land prices are rising, investors scramble for housing, developers scramble for land.
For housing developers, there are more monks and less staff, and there is no hurry.
According to China real estate news, as of November 23, Shenzhen has transferred 28 residential land in 2020, a year-on-year increase of 133.3%, higher than the total of the past three years.
From 2015 to 2019, there are only 6, 6, 3, 10 and 12 residential land leases in Shenzhen.
According to the statistics of Meilian property National Research Center, the total transfer of residential land and homestead reached 75.799 billion yuan, 90.9% higher than the 39.709 billion yuan of last year.
Shenzhen is pushing hard for land, and land auction implements “double restriction and double competition”: limiting land price, limiting average sales price of ordinary commercial housing, competing land price, competing for construction of talent housing area that only rents but not sells.
The profits of developers are obviously not as high as before, but in hot areas such as Bao’an, Guangming and Pingshan, people still flock to them.
Let’s go. Let’s go!
All the evidence shows that there is no way to curb the high housing prices in the main urban area of Shenzhen.

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In order to curb housing prices, Shenzhen issued a new policy of 715 this year, mainly to curb demand.
Facts have proved that it is invalid for Shenzhen people to write articles on marriage and divorce books. The creativity of the people is limitless. Some people in the industry said that after the “715” new deal, in Shenzhen’s new housing market, a large number of non housing priority, 10 million level luxury housing projects, the proportion of holding buyers on behalf of some projects accounted for more than 80%.
What should I do?
What should I do?
What should I do?
Fundamentally speaking, Shenzhen has three ways: learn from Hangzhou to expand the administrative division, learn from Singapore to increase security, and levy property tax in line with Shanghai and Chongqing.
Shenzhen’s population, economic size and administrative scope should have been expanded for a long time. It’s a pity that such a wish has failed many times. Shenzhen is like a fat man who has been put into a baby’s shirt.
In this regard, I deeply sympathize with Shenzhen. Even the Hong Kong Zhuhai Macao Bridge does not pass through Shenzhen. I am helpless.
Learning from Singapore to increase the supply of affordable housing will have a long-term effect. Shenzhen has already done so, but it is not urgent.
The only way left is to levy a property tax.
In the short term, the real estate tax will play an important role.
Levying property tax means directly reducing the return on investment, which is what investors fear most.
Shenzhen real estate is so hot, will soon force the introduction of real estate policies, the most effective is to levy property tax, not to add leverage.
The essence of these two measures is to reduce the return on real estate investment, and leave the rest to the market.
These two ropes will be put around the neck of the tenants. Soon.

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