Shenzhen's first affordable housing "Sunlight" of the year: 10,000+ new and second-hand housing transactions signed online in January

January 31st, Shenzhen’s first affordable housing project of the year, Shen Tie Ming Zhu Fang, opened for sale and sold out on the same day, achieving “sunlight” (full sell-out).

According to the Shenzhen Housing and Construction Bureau, not only are affordable commercial housing units in high demand, but transactions of commercial residential and apartments are also performing well: in January, Shenzhen’s new and second-hand housing online signed contracts totaled over 10,000 units, with second-hand housing online signed contracts increasing by 25% year-on-year and 7% month-on-month, rising for three consecutive weeks, indicating the market is entering a steady recovery phase.

During the New Year’s Day period in 2026, Le You Jia’s second-hand residential viewing volume increased by 81% year-on-year, and signing volume increased by 43% year-on-year. A person in charge of the Shenzhen Real Estate Agency Association stated that many homebuyers are shifting from hesitation to action. Since March 2025, the volume of second-hand homes recorded over 5,000 units for ten consecutive months, with a peak in December reaching 6,613 units, reflecting sustained market demand.

In the new housing market, the supply of quality projects has significantly increased, and “good houses” are selling well. The CITIC Xin Yue Bay, which opened on December 28, 2025, has an average recorded price of 248,000 yuan per square meter, with nearly 80% of units sold; on December 29, in the same area, Houhai Xijia Garden opened with an average recorded price of 150,000 yuan per square meter and was sold out on the opening day. Additionally, the affordable housing project Shen Tie Zhi Ye Ming Zhe Fang, allocated on January 31, 2026, features units of 68-88 square meters with 2-3 bedrooms, all sold out on the same day.

It is understood that Shenzhen has ceased adding new affordable housing projects, with Ming Zhe Fang being a representative of existing affordable housing projects. According to the subscription qualification verification results announced by the Shenzhen Housing Security Office, there are 181 units available, with 662 qualified households, and a project application ratio of approximately 1:3.6, reflecting strong demand from first-time homebuyers for reasonably priced, well-located housing.

Looking at the market by structure, commercial property transactions are heating up. In January 2026, first-hand commercial property transactions in Shenzhen accounted for 35.5% of total new home transactions, and second-hand commercial property transactions accounted for 20.5% of total second-hand home transactions, representing increases of 2.7 and 4.8 percentage points respectively compared to the peak in 2022.

Some well-located, maturely equipped, low-priced small apartments have advantages such as low entry barriers and high rental yields, making them attractive for both self-occupation and stable cash flow through rentals. According to monitoring by Beike Research Institute, high-quality properties like Long Yuan Chuang Zhan Building in Luohu and Shen Cheng Tou Center in Pingshan have rental yields exceeding 4%. On the other hand, high-net-worth individuals highly recognize quality apartments with scarce resources. For example, Lian Tai Chao Zong Bay launched 125 serviced apartments with an average price of about 150,000 yuan per square meter, mainly two to four-bedroom units, with a 76.0% absorption rate at opening.

Currently, the market has the basic conditions for bottoming out and stabilizing. From a policy perspective, at the start of 2026, a series of policy benefits have been introduced: reducing residents’ transaction costs, with the value-added tax rate on property transactions less than two years decreasing from 5% to 3%; supporting “sell old, buy new” replacement demand, continuing the individual income tax rebate policy for buying and selling; optimizing commercial and office policies, lowering the minimum down payment ratio for commercial property purchases from no less than 50% to no less than 30%; easing developers’ capital pressures, with loans for qualified “white list” projects extendable by 5 years.

From an urban economic perspective, Shenzhen’s GDP grew by 5.5% year-on-year in 2025. The total industrial output value and added value above designated size have maintained the top position nationwide for four consecutive years. The strong resilience and vitality of the city’s economic fundamentals will effectively improve residents’ employment and income expectations, further boosting real estate market demand.

Li Yan, director of the Shenzhen Real Estate and Urban Construction Development Research Center, stated that current real estate indicators are gradually returning to reasonable ranges. Shenzhen’s rental yield has risen to about 1.8%, higher than the annual interest rate of large bank certificates of deposit (about 1.6%). Looking ahead to the first quarter of 2026, high-end quality residential projects such as Houhai Yunxi Garden Phase II, Qianhai Times Square by the subway, and Haiyan Fu will be launched successively. Existing affordable housing projects will be released in an orderly manner. With the city benefits brought by the APEC meeting and the continuous net inflow of permanent residents, the demand for first-time homeownership, upgrading, and asset allocation will continue to be released, and Shenzhen’s real estate market is expected to continue warming up.

(Source: 21st Century Business Herald)