“Shenzhen market’s response to the recent policy changes was swift and demonstrated confidence building up from purchasers’ perspective in Q4/2024. The residential market recovery momentum is expected to grow in 2025.”

CARLBY XIE, SAVILLS RESEARCH



Market bottoming out

• The average loan interest rate for first-time residential purchasers in Shenzhen decreased from 3.40% to 3.15% in late October 2024.

• As of 18 December 2024, the annual supply volume decreased by 28.4% YoY to 3.8 million sqm.

• The citywide annual transaction volume soared by 28.1% YoY to 4.6 million sqm.

• First-hand residential transaction prices decreased by 13.8% YoY to RMB55,844 psm.

• The take-aways from the latest statements of the annual Central Economic Work Conference indicate that more preferential policies are expected to come up to stimulate further growth and stable development of the local residential property market. The citywide transaction volume is anticipated to increase in 2025.