The average price of new homes in Shenzhen hit a record high in February, surging to nearly 27,942 yuan (US$4,543) per square meter (sqm) with a year-on-year growth rate of 21.9 percent, according to a report released by Shenzhen's urban planning, land and resources commission.
The city's home prices have been rising for six months in a row since September. In February, a total of 1,985 new apartments were sold, but none were sold between Feb. 15 and 20 due to the Spring Festival holiday, Shenzhen Economic Daily reported yesterday.
The average home prices in Luohu, Futian and Nanshan districts all exceeded 42,000 yuan per sqm, and the average price in Luohu District topped the city at 46,236 yuan per sqm, with a month-on-month growth rate of 3.3 percent.
Driven by sales of high-end apartments, the average home prices in Bao'an and Longgang districts increased in February to 26,493 yuan and 22,431 yuan per sqm, respectively, while the average price in Longhua New Area dropped to 26,777 yuan per sqm.
"Looking at it from the perspective of overall transaction data, homebuyers purchased high-end apartments to improve their living conditions," said Yu Jiaxiong, a senior manager with Centaline Group's Shenzhen office.
On Sunday, the People's Bank of China cut interest rates on one-year loans from commercial banks by a quarter of a percentage point to 5.35 percent. The interest rate paid on one-year deposits was also lowered by a quarter of a point to 2.5 percent.
Xie Yifeng, president of a real estate research institute, said this news is expected to make home prices rise even more.
According to a report released by China Index Academy, the average price of a new apartment among China's 100 major cities in February was 10,539 yuan per sqm, with an average month-on-month growth rate of 0.24 percent.