Shenzhen’s meteoric housing market to slow in 2017, but risk of a bubble remains, analysts say
Prices in Shenzhen have soared 76 per cent since January 2015 but are now undergoing a correction
The pinnacle of China’s booming property market can be seen at its southern tip in Shenzhen, the country’s own “Silicon Valley”.
People from all over China are drawn to this mecca of technology, with start-ups and companies rapidly developing capabilities for internet and financial services, automation, robotics, artificial intelligence, and virtual reality.
This has turned Shenzhen into an immigration city where over 90 per cent of its residents are non-local, according to Bryan Chan, director of advisory services for South China at Colliers International.
The city houses the headquarters of such talent magnets as tech giant Tencent, smartphone maker Huawei, and insurance company Ping An.
“Shenzhen growth as a tech hub is rocketing,” said Jex Ng, managing director of South China for Jones Lang LaSalle (JLL). “Shenzhen has attracted the best talent from around China, or even from the rest of the world.”
As a result, the city has become one of the hottest residential markets in the world, with prices surging 76 per cent between the start of 2015 and August 2016, said Ng.
