China property: Shanghai and Shenzhen luxury home sales soar after stimulus package

Name: SCMP
Telephone: +852-2680-8888

Wealthy buyers snap up homes in prime locations amid renewed optimism driven by relaxed purchase restrictions and lower mortgage rates

Reading Time:2 minutes

Why you can trust SCMP

Luxury property sales rose in Shanghai following the launch of China’s stimulus package. Photo: Xinhua

Yulu Ao

Published: 10:30am, 1 Oct 2024Updated: 6:04pm, 4 Nov 2024

Sales of luxury homes jumped in the mainland Chinese cities of Shanghai and Shenzhen immediately after the historic stimulus package, with wealthy buyers snapping up some 360 flats totalling worth 20 billion yuan (US$2.85 billion) as buyers bet on a brighter economic outlook.

Lakeville Phase 6, a residential project by Shui On Land in the heart of downtown Shanghai’s Huangpu district, sold all 108 flats launched on Friday, fetching some 12 billion yuan.

At Auant, another luxury project in the city’s Xuhui district, buyers snapped up all 178 available flats – priced from 15 million yuan to 33 million yuan – within an hour. Developed by China Overseas Land & Investment (COLI), it was the third round of sales for the project this year, in which all flats sold out on the day of the launch.

In Shenzhen, Arcadia Bay, another luxury project developed by COLI, found buyers for nearly half of the 152 flats in the third phase on Saturday, pulling in more than 2 billion yuan. All the units in the first two phases launched in the past few months were immediately sold out as soon as they were offered.

It is the first residential project in Shenzhen Bay Super Headquarters Base, a developing business and financial centre in the bustling Nanshan district, planned under the city’s ambitious blueprint for connecting and serving the Greater Bay Area. The area is expected to serve as the new headquarters of technology and financial giants, including Oppo, ZTE, JD.com and Citic Group.

01:23

China announces mortgage rate cut as part of new measures to boost economy

The People’s Bank of China on Tuesday asked lenders to cut mortgage rates by half a point and cut the down payment for second-homes to 15 per cent from 25 per cent. In all, some 150 million homeowners could save 150 billion yuan annually, governor Pan Gongsheng said. These and other measures are aimed at spurring consumption and stimulating property sales.