Shenzhen’s housing prices are not reliable compared to Hong Kong’s. Shenzhen’s housing prices are only 40% of those in Hong Kong.

Shenzhen has become the city with the largest housing price increase in the country this year, while property prices in Hong Kong, across the water, are declining. Some people in the market believe that "if prices continue to rise at this rate, housing prices in Shenzhen will exceed those in Hong Kong." In fact, housing prices in Shenzhen are only 40% of those in Hong Kong. In the short term, or even in the long term, housing prices in Shenzhen are unlikely to exceed those in Hong Kong.

Shenzhen housing prices are only 40% of those in Hong Kong

After falling for three consecutive months month-on-month, Shenzhen housing prices suddenly soared in November, historically exceeding 40,000 yuan/square meter Compared with 26,691 yuan/square meter in January this year, the price increased by 67.7%, and the year-on-year and month-on-month increases were 68.7% and 33.2% respectively.

The opposite situation has occurred in neighboring Hong Kong. The Hong Kong Rating and Valuation Department recently announced that the latest Hong Kong property price index fell by 1.11% month-on-month in October. This is the first time the index has fallen after rising for 19 consecutive months, and it has also set the largest single-month decline in four years. Residential properties of different sizes Unit prices fell across the board. This was seen as sounding the alarm for a downturn in the property market.

In the first 11 months of this year, the average housing price in Shenzhen was 32,000 yuan/square meter, while that in Hong Kong was about 76,000 yuan/square meter. The housing prices in Shenzhen were only about 40% of the level in Hong Kong.

Shenzhen luxury homes are “in line” with ordinary homes in Hong Kong

Since this year, a certain number of top luxury homes have appeared in Shenzhen, some even reaching a price of 200,000, such as the price of a top-floor unit in China Merchants Shuangxi is 200,000 yuan/square meter; the prices of two penthouse units in Tower 4 of Hengyu Bincheng Phase II are 172,000 yuan/square meter and 170,000 yuan/square meter respectively. The construction area is only 91 square meters, and the total price exceeds 1,500 yuan. Ten thousand yuan; there are two large apartments on the top floor of Building 9 of Silver Lake Blue Mountain Runyuan Phase II, each with an area of ??670 square meters. The total price of RMB 100 million may be the highest for residential luxury homes this year.

Liu Jiahui, director of the research department of Midland Group, believes that the price of luxury houses in Shenzhen is indeed the same as that of ordinary houses in Hong Kong, but comparing different types of houses together is not convincing. The price of luxury homes of the same quality in Hong Kong is generally 500,000 to 600,000 yuan per square meter.

It is impossible to exceed Hong Kong’s property prices in the short term

House prices in Shenzhen and Hong Kong rise and fall. Industry insiders believe that if Shenzhen’s housing prices continue at this rate, Shenzhen’s housing prices will soon exceed Hongkong.

Li Silian, chairman of Guangzhou R&F, said: "The high housing prices in Shenzhen mean that it has good prospects and is worthy of investment, but it does not mean that it can surpass Hong Kong."

"Shenzhen's housing prices have increased significantly this year The rise is the concentrated release and supplementary increase of the control policies that have suppressed housing prices since 2010. Wang Feng, director of the Shenzhen Real Estate Research Center, said frankly, "Shenzhen's reasonable housing prices should be between 36,000 and 38,000 yuan per square meter. In the short term, housing prices in Shenzhen will be higher." Song Ding, director of the Tourism and Real Estate Research Center of the Comprehensive Development Research Institute, said that Shenzhen’s per capita GDP is 2/3 of Hong Kong’s, and its housing prices are 1/2 of Hong Kong’s. /3 strong, it is expected that per capita GDP will be comparable to Hong Kong in five years, and housing prices will lag behind, and the average price will be comparable to Hong Kong in about ten years.

(The above answer was published on 2015-12-14, please refer to the actual relevant current home purchase policies)

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