The average housing price in the Shenzhen Special Economic Zone (SEZ) surpassed 10,000 yuan (US$1,233) per square meter during the first three months of the year, the housing authority said during the Shenzhen (Spring) Real Estate Fair that closed at the Shenzhen Convention and Exhibition Center yesterday.

The average price over that three-month period was 35.46 percent higher than the same period last year. Meanwhile, the average housing price outside the SEZ jumped 25.63 percent to 8,126 yuan per square meter, according to the authority.

Wang Feng, vice director with the Shenzhen Real Estate Research Center, said the major reason for the price hike was the tight supply.

Zhu Genping, general manager of Jungs Real Estate, attributed the rising prices to a land shortage, the booming economy, and the improving quality of the housing estates.

"The gap between the average housing price and the annual family income is too large," says a report by the housing authority.

Despite the high prices, visitors to the fair found few new housing projects inside the SEZ. And most of the projects outside the SEZ were villas with prices higher than 10,000 yuan per square meter.

Only 47 developers were at the exhibition, about half the number that appeared at pervious fairs. Some well-known developers including the OCT and Sinolink did not show up. "The housing estates sell so well that some developers feel it unnecessary to attend the fair," an industry insider told the Daily Sunshine.

On May 3, the opening day of the real estate fair, social activist Zou Tao went to the fair to dissuade people from buying high-priced houses. "I came here to advise people to guard their money before the housing prices drop to a normal level," said Zou, who was accompanied by a lawyer.

Faced with high housing prices in Shenzhen, some homebuyers showed interest in nearby cities like Huizhou and Dongguan, where houses are much cheaper. Housing projects in these cities that were attending the fair attracted many homebuyers. Shenzhen's real estate developers, meanwhile, expressed interest in the land available in 21 inland cities.

The Shenzhen (Autumn) Real Estate Fair will be held Sept. 29 through Oct. 3 at the Shenzhen Convention and Exhibition Center.

Editor: Yan